Re:Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
by londons_explore on Wednesday September 28, 2022 @11:42AM
(#33009286)
Having worked at a company that got an Apple deal... It usually isn't a level bargaining table... And it isn't unusual for no profit to be made whatsoever on the Apple deal, because merely the rumour that Apple has signed a deal with your company has so many other benefits.
TSMC is in a stronger position than most suppliers, because they have really strong demand for their product and don't need the prestige that an Apple deal offers.
Re:Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
by ras3022 on Wednesday September 28, 2022 @12:17PM
(#33009742)
Exactly. And they pretty much have to make a deal because if they don’t it’s mutually assured destruction.
There’s so seller like TSMC and no buyer like Apple.
Re:Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
by yellow_lead on Wednesday September 28, 2022 @10:55AM
(#33008708)
"strategic priorities" or "Something that can make me look good" to an executive
Pretty much like sovereign nations negotiating treaties.
Which is an apt metaphor, because neither Apple nor TSMC has the ability to force the other to do anything.
So, negotiations become a crawl to find a mutually-acceptable local optimum. Which ends up with both getting things they see as strategic priorities, while compromising on things they care about less.
Most of the dance is around figuring out what the other's strategic priorities actually are, and which concerns are secondary.
Or they have mutually-exclusove strategic priorities, in which case there is no deal.