That $7.8b Apple-Samsung Deal isn’t as big as you might think

That $7.8b Apple-Samsung Deal isn't as big as you might think e-Reading Hardware The hot story today is about the deal that Samsung and Apple are about to sign. Over the next year, Samsung will provide $7.8 billion worth of components for the iPad and iPhone. this deal would make Apple the single largest customer of Samsung.

I'm sure you're thinking "wow, that's a lot of money. Maybe Apple should merge with Samsung." That was my first thought, but then I decided to see much this deal matters to Samsung.

It's not as big as you think. According to Wikipedia, the Samsung Group earned revenues of $172 billion in 2009. This deal is only worth about 5% of Samsung's revenues. It's big, yes, but not overwhelming. In fact, I wouldn't be surprised to discover that Samsung's retail operation in the US were worth nearly as much.

Nate Hoffelder

View posts by Nate Hoffelder
Nate Hoffelder is the founder and editor of The Digital Reader: He's here to chew bubble gum and fix broken websites, and he is all out of bubble gum. He has been blogging about indie authors since 2010 while learning new tech skills at the drop of a hat. He fixes author sites, and shares what he learns on The Digital Reader's blog. In his spare time, he fosters dogs for A Forever Home, a local rescue group.

5 Comments

  1. Scott G. Lewis14 February, 2011

    Deal signing that makes the new party the largest customer, instantly? 5% of revenues? I think that is a pretty big, overwhelming deal.

    Reply
  2. Zigwalski14 February, 2011

    When you are dealing with that type of high dollar amounts, 5% is a huge deal. You continue to astound me with your lack of business knowledge.

    Also these are components not Samsung products being sold. This is genuine profit making items not subjected to the marketplace trends and discounts. Of course, if the marketplace goes south, Apple may not use them next year.

    Reply
    1. Nate the great14 February, 2011

      Do you know what? I’m tired of you. Good-bye.

      Reply
  3. Tyler15 February, 2011

    Samsung Electronics had sales of $119 Billion. That would be a tad bit lower than the whole Group.

    Reply
  4. James Wells13 August, 2013

    You do know that Samsung is a conglomerate and have around 90 companies doing and making different things, and if you add up the value of all of these companies, Samsung Group is actually worth around a Trillion Dollars, so technically Samsung group is bigger than any other company on this planet and make more things that any other company. So 7 billion is nothing in samsung really!

    Reply

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