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Samsung set to pass Apple costs to customers

While the press across the globe were full of insight and analysis on Apple’s $1 Billion ruling against Samsung, we can’t remember anyone discussing who would actually be paying for the settlement. The latest info from research company, iSuppli, seems to lay it all out clearly.

It’s us.

There you go. Nice and simple. No chance of mis-understanding.

Right now, Samsung has set its margins at an unbelievably high level. It’s doing that by creating huge mark ups on tablet-like products. That cash will help pay Apple after the US courts ruled that Korean Samsung stole ideas from its American rival.

Surely, you say, everyone is allowed to make a profit.

True. Which brings up the question of ‘What kind of pricing indicates a margin that’s just too large?’.  Here is the inside track on the Samsung Galaxy Note 10.1 so you can judge for yourself if enough money is being made by Samsung.

Making $347 on product that cost $293 seems a lot. Would it cost less if we all just sent $100 direct to Apple?

KitGuru says: So there you have it. Anyone buying a Samsung product  where the ‘sell’ price is more than 100% of the ‘cost’ price, is simply sending money direct to Apple. The next question must be, ‘Do people want Samsung products this badly?’. Surely this must open up some kind of opportunity for HTC and others.

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