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