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HP Stats Apple Hardware

Apple Now World's Largest Semiconductor Buyer 92

Lucas123 writes "Apple has leaped two spots to become the world's largest consumer of semiconductor technology, including NAND flash, NOR flash and microprocessors. Apple spent $17.5 billion on semiconductors in 2010, an increase of 79.6% over 2009. Sixty-one percent of Apple's semiconductor budget in 2010 was spent on wireless products such as the iPhone and iPad, while second place HP spent 82% of its semiconductor budget on computer products like desktops, notebooks and servers."
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Apple Now World's Largest Semiconductor Buyer

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  • surprising (Score:4, Informative)

    by Anonymous Coward on Saturday June 11, 2011 @09:18AM (#36410410)

    it is surprising how hard it is for slashdot posters to click one link further to the real article instead of linking to the one with adds.

    http://www.isuppli.com/Semiconductor-Value-Chain/News/Pages/Apple-Becomes-Worlds-Largest-OEM-Semiconductor-Buyer-in-2010.aspx

    • Re: (Score:3, Funny)

      by Anonymous Coward

      Can you link me to the one with subtracts?

    • by Idbar ( 1034346 )
      For what it's worth, that's the only thing I've seen editors change. They may not fix the title, or check the summary (sometimes even typos), but for sure, they will try to fix the URL to point to what I believe is one of their "partners".
    • it is surprising that a few slashdot posters still don't know how to code links: Click Here! [isuppli.com]
  • SAMSUNG (Score:4, Interesting)

    by brunes69 ( 86786 ) <`gro.daetsriek' `ta' `todhsals'> on Saturday June 11, 2011 @09:29AM (#36410474)

    And Samsung is the world's second largest semiconductor MANUFACTURER, after Intel.. including providing a lot of chips to Apple.

    Meanwhile, Apple is in the middle of a giant lawsuit against Samsung for it's mobile phone division, which is starting to seriously make a run for crown of the Android market, and is eating away at Apple's business.

    Fun times ahead.

    • Re:SAMSUNG (Score:5, Insightful)

      by papasui ( 567265 ) on Saturday June 11, 2011 @10:02AM (#36410638) Homepage
      Well I think Apple's kinda got Samsung by the balls. Yeah Samsung is probably pissed about the lawsuit, but on the other hand if they say fuck Apple they just lost one of their largest customers. Granted Apple would need to get a new supplier but one thing I've learned in business is you never want the vendor thinking they are your only option. Hell I imagine Apple probably could start manufacturing the parts they want, I believe there sitting on around 60 Billion in cash.
      • Re:SAMSUNG (Score:5, Interesting)

        by wisty ( 1335733 ) on Saturday June 11, 2011 @10:13AM (#36410682)

        I'm guessing Samsumg's VP of mobile considers the VP of manufacturing to be an enemy, as both of them are in competition for the CEO postion. If hitting Apple hurts manufacturing, that's two birds with one stone.

        • How is this flamebait? Someone at samsung has mod points?
        • Wow really ? The guy that presided over a 14% drop in phone sales [electronista.com] is in line to become CEO and is willing to piss of the biggest customer of the profitable part of business to do so ? Talk about cutting off your nose to spite your face.

        • by rtb61 ( 674572 )

          Let's be honest, first rule of business kill the middle man, unless of course you're the middle man, in which case bullshit remains supreme.

          From the consumer standpoint, getting as close as possible to the manufacturer saves a lot of empty pointless profit margins. From the manufacturers standpoint getting as close as possible to the consumer saves a lot of pointless on costs.

          Of course Samsung can cripple Apple by attacking it's supply chain and tying it up in court. After all Apple is not Samsung's co

      • No matter how many women you have working in parallel, you cannot make a baby in less than 9 months. $60B means nothing when you make one-of-a-kind items which need fab plants operational right now. Apple may have the cash to build what they need, but there's a lot of strategy around planning a 2-3 year fab plant construction and staffing schedule without cmopletely alienating your current vendors.

    • Apple really needs to open up its phones like it did from the beginning with iPad. Currently, I think the US is one of the few countries they are unwilling to sell it unlocked for whatever reason.

      I know several international (small) business travelers that would love to have an iPhone the past years, but as long as they aren't allowed to swap sims (for a local sim once they get into that country, much cheaper than ATT ass-raping intl rates), it's a no go. And they aren't about to carry two phones and main

      • Re: (Score:3, Insightful)

        Blame US carriers for lock in, not Apple.

      • You could import an unlocked iPhone from Europe, but it would still only work on AT&T, because they are the only US phone company that use the same technology as the rest of the world.

        • by Macrat ( 638047 )

          You could import an unlocked iPhone from Europe, but it would still only work on AT&T, because they are the only US phone company that use the same technology as the rest of the world.

          It will work on T-Mobile. Granted it will only connect via EDGE, but ATT's 3G is mostly only as fast as EDGE anyway. :-)

    • Is it eating away at Apple's business? Marketshare doesn't = profitshare. I think Apple are more interested in the latter.
    • Re:SAMSUNG (Score:5, Informative)

      by Karlt1 ( 231423 ) on Saturday June 11, 2011 @12:33PM (#36411716)

      Meanwhile, Apple is in the middle of a giant lawsuit against Samsung for it's mobile phone division, which is starting to seriously make a run for crown of the Android market, and is eating away at Apple's business.

      Apple:

      1. Generates more revenue than any other company in the world selling cell phones (yes they generate more revenue than Nokia)

      http://news.cnet.com/8301-27076_3-20056289-248.html [cnet.com]

      2. Has 50% of the worldwide profit in cell phones compared to 13% for all Android manufacturers combined:

      http://www.asymco.com/2011/05/16/iphone-share-of-phone-market-in-q1/ [asymco.com]

      3. The iOS app market is more than 17x bigger than Android's by revenue:

      http://techcrunch.com/2011/02/21/861-5-percent-growth-android-puny/ [techcrunch.com]

      Android from a business perspective isn't really doing that great.....

      • Great post. And news flash: closed, proprietary systems generate massive profits for their owners.

        So true. Jim Whitehurst from RedHat said this to me last year -- RedHat as an OS is installed in 20% of the enterprise servers in the world (remember his stats as told to me verbally). RedHat makes 2% of the profits of the enterprise server vendors. So the other 80% of the servers' OS's are generating 98% of the profit in the industry. He also said that if you look at all the $100B+ valued companies in the worl

        • by Karlt1 ( 231423 )

          Great post. And news flash: closed, proprietary systems generate massive profits for their owners.

          Well, common "Slashdot Wisdom" was that "open always wins" and that Apple's closed proprietary nature was going to end up making the iPhone/iPad like the Macintosh (which also generates more profit than any other computer maker. ) and relegate it to a niche player.

          • Apple may just be the DEC of this decade? But since this decade is just getting started, they may make a whole pile of money before "open wins." and I don't think DEC had to go out of business and Apple will have history to help them guide their future decisions.

            Apple has been smart by not being tied down to a particular "layer" in the profits (the "value chain" as I think Geoff Moore calls it). So they've made a pile on their laptops for awhile, and now they're making an even bigger pile on their consumer

  • by denzacar ( 181829 ) on Saturday June 11, 2011 @09:39AM (#36410522) Journal

    Apple strength in hardware sales lies in its device and media ecosystemâ"every Apple product is connected through iTunes/iOS and is synergetic with all other Apple products.
    As a result, committed users of the Apple ecosystem derive more value from each additional Apple device they buy, and users have little interest in leaving the Apple realm.

    In other words, through a common ecosystem, Apple leverages each device to sell other devices. Rising device sales to consumers then leads to increased semiconductor purchasing by Apple.
    .
    .
    A buyer that once purchased a Hewlett-Packard PC would just as likely purchase a Dell PC next if the price was better, given that there is little or no value in purchasing another Hewlett-Packard.

    Stupid PC buyers... buying according to their needs and monetary abilities. Why can't they learn that it is much better to be "committed".
    Also, HP (and Samsung) buys almost as much semiconductors as Apple (even without all those pricey touchscreens) - but it sucks ass.
    While Apple rocks.

    • by Kjella ( 173770 ) on Saturday June 11, 2011 @10:04AM (#36410648) Homepage

      Stupid PC buyers... buying according to their needs and monetary abilities. Why can't they learn that it is much better to be "committed".
      (...)
      While Apple rocks.

      Funny that, since Apple is the IBM of cell phones while Android is the Microsoft. If you invest heavily in Android apps, you can switch between any number of clones. If you invest in iApps, you're committed to Apple hardware which comes with a heavy premium.

      Don't get me wrong, I have an iPhone myself because it has features ahead of its time - but so did OS/2. But unless they keep moving they'll end up just like IBM did, overrun by cheap clones doing pretty much the same at a much lower cost.

      • It suggests to me they need a cheaper version of the iPhone (I think offering 3GS this long was the idea behind that) but also cheaper plans or just offering it unlocked, cheap, so I can have the carrier of my choice.

        Who knows, maybe they'll start offering the 3GS for $229 or some such with the pre-paid cell phone plans out there is Apple smartens up.

        • by Macrat ( 638047 )

          It suggests to me they need a cheaper version of the iPhone (I think offering 3GS this long was the idea behind that) but also cheaper plans or just offering it unlocked, cheap, so I can have the carrier of my choice.

          The Verizon/ATT duopoly doesn't want you to have any choice.

      • by Anonymous Coward

        Yeah, and IBM is just a hollow shell now...wait, no, it's one of the largest IT consulting firms in the world. Last year, IBM had revenues of nearly $100 Billion (for comparison, Apple "only" pulled in $65 Billion). Loss of one market does not mean that a company will die. I wouldn't have a problem with Apple ending up "just like IBM did". Hopefully, they would adapt and move on to dominate different markets.

      • by Anonymous Coward

        I guess every post with the word Apple in it will be reduced to a IOS vs Android cock fight in the comments. I'll bite anyway, since TFA is boring and inaccurate. I mean... the word semiconductor refers to basically every IC and component based on a transistor. TFA seems to refer to only flash memory and microprocessors... Apple was, at several times (perhaps mostly due to Apple's irregular and controversial purchasing patterns) the largest buyer of Flash memory. Besides... these numbers seems to be based o

      • If you invest in iApps, you're committed to Apple hardware which comes with a heavy premium.

        Huh? Apple's phones at worst are marginally more expensive than Android phones from the same carriers (especially discounting the two-for-one giveaway deals that are now cropping up on Android phones because otherwise the carriers couldn't move the things). We're talking $200-$300 over 2-3 years. For most people who can afford a smartphone at all, that doesn't even approach a "heavy" premium.

        And in exchange for th

        • And in exchange for the extra couple hundred dollars, you get world-class support - everything from prompt OS updates to a wide range of peripherals to the best in-store experience in the industry. I had an out-of-warranty iPhone die on me, and Apple swapped it out free of charge.

          Lucky you, I had a broken home button (just that and yet the phone was completely useless), no warranty and it cost me 100 euros to get it fixed (a refurbished phone btw).

  • by errandum ( 2014454 ) on Saturday June 11, 2011 @09:42AM (#36410544)

    You have to understand that apple might as well be the biggest gadget manufacturer in the world. They do desktop computers, notebooks, netbooks and phones (Not to mention iPod lines with touchscreens, for example).

    And unlike android or windows, they do manufacture everything themselves, so the load is not spread between every company that decides to produce a windows laptop or android phone.

    • Re:And? (Score:4, Informative)

      by hedwards ( 940851 ) on Saturday June 11, 2011 @09:50AM (#36410582)

      Apple manufacturers very little themselves, they contract out to folks like Foxconn for the actual manufacturing. Not that there's anything inherently wrong with contracting out the actual manufacturing, I just think that it's important to keep in mind that the contractors hardly work just for Apple.

      • I think he meant design. From motherboards to the exterior.

      • Apple manufacturers very little themselves, they contract out to folks like Foxconn for the actual manufacturing.

        While HP, Dell etc. have everything build by Foxconn - big difference.

        • Comment removed based on user account deletion
          • While HP, Dell etc. have everything build by Foxconn - big difference.

            Don't be an idiot.

            HP & Dell have their own design people just like Apple do, else Foxconn would just be churning out identical black boxes that would just be re-badged by Dell and HP.

            Foxconn CEO: Apple products “very difficult” to make [9to5mac.com] - you can spare us the "that's because Apple engineers are idiots and make them overly complicated to build when they could just make the not-quite-the-same PCs everyone else does".

      • Obviously. It's my non-english upbringing :P. Obviously they don't assemble the thing, they just design it and make someone else do it. Still, they have to buy/own all the parts that are used, so the argument stands :)

    • Re:And? (Score:4, Informative)

      by NatasRevol ( 731260 ) on Saturday June 11, 2011 @09:56AM (#36410604) Journal

      You're comparing wrong.

      Apple is larger than HP, Dell, Acer, Asus, HTC, RIM, etc. And not by just a little bit either.

      Think how many laptops/desktops/servers/soon-to-be-tablets HP sells worldwide. Apple is bigger than that, by a lot.
      Think how many phone models/tablet models HTC sells. Apple is bigger than that, by a lot.

      • by Anonymous Coward

        Think how many laptops/desktops/servers/soon-to-be-tablets HP sells worldwide. Apple is bigger than that, by a lot.

        Do these statistics exist somewhere?

        The HP Revenue is twice that of Apple. (Profits might not) So I'm guessing your're just pulling these from your backside.

        You're entirely correct about HTC however.

        And why didn't you compare Apple to Samsung? Samsung also makes Laptops, mobile phones and tablets.

        • Re:And? (Score:4, Interesting)

          by dgatwood ( 11270 ) on Saturday June 11, 2011 @11:56AM (#36411368) Homepage Journal

          The HP Revenue is twice that of Apple.

          Your numbers are out of date. For the quarter ending in February (HP) and April (Apple) of 2011, HP's revenue was about $32.2 billion, and Apple's was about $24.67 billion, and almost all of that difference comes from HP's printer division. In fact, if you subtract out printers, the HP services group (IT support, etc.), and the HP financial services group, HP would have brought in only $16.42 billion net in that same quarter.

          • How long before Apple gets back into the printer business? The margins there are still insane, and the products are universally shit. Every HP printer I've ever owned, used or helped a friend try to work has been a festering pile of crap. Don't even get me started on ink that "expires" a week after you've put it in the printer.

          • And even taking all that out how does that make apple bigger than HP by "A LOT", The OP claimed Apple were bigger than HP, They aren't, they are bigger than a certain portion of HP, but even by chopping out a whole lot of areas it is only a small difference. Basically the OP was full of shit and got called on it.
        • I didn't say revenue.

          Count the number of iPhones/iPads/laptops/desktops that Apple sells - about 35M units.
          http://images.apple.com/pr/pdf/q211data_sum.pdf [apple.com]

          Count the number of tablets/laptops/desktops/servers that HP sells - about 25M units.

      • by Anonymous Coward

        Think how many laptops/desktops/servers/soon-to-be-tablets HP sells worldwide. Apple is bigger than that, by a lot.

        Er, no. Apple do not ship more desktops, laptops and servers than HP. Walk into large data centre and it'll probably be HP. Google? HP. Amazon? HP. Microsoft (E.g. Bing)? HP. Apples new data centre in NC? Not Xserves.

        For the corporate desktop and laptop market, there are three players: IBM, Dell and HP. Dell and HP are far bigger than IBM in that market, too.

        • Go look at the actual numbers. I've posted them above.

          BTW, there are a LOT more consumers buying computers than there are data centers buying computers.

      • by maxume ( 22995 )

        Apple isn't bigger than HP. Compare the revenues here:

        http://finance.yahoo.com/q/is?s=HPQ+Income+Statement&annual [yahoo.com]
        http://finance.yahoo.com/q/is?s=AAPL+Income+Statement&annual [yahoo.com]

        Apple makes more income for every dollar of revenue, but HP has a lot more revenues.

      • Comment removed based on user account deletion
      • Who marked this informative? Yes, Apple is bigger than companies that specialize in one specific area, no shit. This is like pointing out that Microsoft is bigger than Nintendo, so what? Dell competes against Apple in desktop and laptop (does Dell make tablets?), and there are a hell of a lot more Dell's in the world than Macs. Dell doesn't compete in smartphone, music stores, portable music players, or anything else Apple is doing other than desktops and laptops. It doesn't matter how big Apple is to
  • That was fast... (Score:4, Insightful)

    by Max Romantschuk ( 132276 ) <max@romantschuk.fi> on Saturday June 11, 2011 @09:49AM (#36410574) Homepage

    About ten years ago, before the iPod and OS X, I suspect very few of us suspected anything like this from Apple. As much as I don't agree with their walled garden approach to software, it's hard not to be impressed with what they have accomplished.

    And yet, we're very much in a transformative age in computing. Desktops are increasingly rare for mainstream computing, tablets are on the rise, and there are billions of people who are getting their first taste of the Internet not through a traditional computer, but instead a smartphone. Everyone is searching for the holy grail, the next big thing.

    It's gonna be an interesting next ten years. I for one is staying idealistic and hoping for open standards and interoperability across devices, platforms, and operating systems. Sorry, Apple.

    • Re: (Score:3, Insightful)

      by Anonymous Coward

      You're right: desktops are dying. Smartphones and iPads are the choice of younger people now, and using those they can stay in touch via social networking wherever they are, rather than being tied to a desktop and a power cord. That's why this line from TFS was telling:

      > iPhone and iPad, while second place HP spent 82% of its semiconductor budget on computer products like desktops, notebooks and servers.

      Apple's share is in devices with explosive growth - they're positioned well for the post-PC world (a

      • The iPads are to small for real work like cad, excel, call centers, photo shop like work, stuff where you need more then one app open side by side, codeing, lots more as well and the small caps make cloud based work cost alot / in some areas 3g is to slow for big files.
        • by jedidiah ( 1196 )

          Apple devices don't scale well for "work" in general. It doesn't matter if it's a higher degree of interactivity or just handling more "use".

          They are also intentionally limited in terms of "play".

          The new input devices certainly hold a lot of promise but the current devices that tend to employ them are overhyped. It's the inputs that are interesting not so much the devices they happen to be attached to today.

        • by Anonymous Coward

          > The iPads are to small for real work like cad, excel, call centers,... codeing,

          Right. Because those things matter to almost everybody.

          See, Slashdot have this weird thing where they think the 0.2% of the market they are in matters in some way. It doesn't. Normal people don't use CAD programs or code. They watch videos, they use social networking, they IM. That's the vast majority of the market. And guess what? Increasingly, people are finding they prefer iPads and smartphones rather than desktops

        • I imagine the larger, heavier high-def Android tablets are on the way. Probably Christmas. They'll also have some way to use multiple HDTVs as wireless monitor extensions I imagine - which would solve all of your problem except the keyboard and Wacom tablet. We're almost there.
        • There has been a slew of changes in Android 3.1 - such as full support for mice (on app level - the ability to handle mouse hover and drag events, trackpad scroll etc) - that clearly hint at Android being geared towards netbooks and above.

          Meanwhile, Apple is rapidly updating OS X to be more and more like iOS - app store, fullscreen apps etc.

          Will tablets kill laptops/desktops? No. But I'm pretty certain that the latter two will run software which looks much more like what we see on tablets today in 4-5 years

      • Loads of servers everywhere, with terminals to login, or access to the server 'cloud/internet' via portable devices such as mini tablets/phones, or larger 10"+ tablets.

        Phone/tablets will grow closer to desktop cousins, as in more storage/local apps. And desktops converted to more home servers, so pretty much later there will be ONLY laptops / tablets to buy, and big box 'Home Servers' that handle shit loads of backups/media servers/PVRs/VMs.

    • by rolfwind ( 528248 ) on Saturday June 11, 2011 @11:26AM (#36411128)

      There has to be closed-garden companies like Apple to make new paradigms. They control the OS, they can make it do what they want. They're also not afraid to do away with tradition that has no use anymore.

      Unlike PC manufacturers, who with Microsoft, can only design computers with what Microsoft had in mind. Tweaking can be done, but nowhere near the level needed that went from OS X -> iOS. They had PC tablets from 2001, and guess what, they were just junk. Just like the Windows phones, which had the same start button on bottom left mentality - give me a break!

      Even after 15 years of Linux, I haven't seen the open approach yield much in productive innovation on the desktop front. Design by committee is the worst. Or a 100 comittees in this case. And Microsoft has that same problem. And PCs have design by tradition. It took Apple to get rid of the floppy and some legacy ports that 99% of people don't use.

      And even after Apple is gobbling up the notebook market, I don't see many of the PC manufacturer so much as even copy them. Same plasticky, gimmicky shit notebooks as ever. Sure, Dell make copy MacBook Air with Adamo or whatever it's called (as useless as either were), and they may also make the shiny screens, or chicklet keyboards - but the bodies, the very first impression of a notebook on PCs has remains the same plasticky, unwiedly, fugly crap that they've been pushing out in 1998. No clean lines or anything like the Power Mac or moreso MacBook Pro. Boggles my mind.

      And I say this as someone that would like to see nice computers on the PC front as I work on a PC desktop. I recently got a hand me down desktop and it was fucking gaudy - LED lights and gauges everywhere, like a poor man's F1 racer in computer case form. Tried to find something minimalistic, and the nicest thing I could find was a black case version of das keyboard.

      *(I do love open source and open standards, but keep them the hell away from the GUI :D)

      • There has to be closed-garden companies like Apple to make new paradigms. They control the OS, they can make it do what they want. They're also not afraid to do away with tradition that has no use anymore.

        While you're right that controlling the whole stack does make it easier do throw away tradition, I have to disagree with the "has to" part. You're also right that a lot of the design work that goes on in the open source world is rather abysmal. But to assume that the open source approach in incapable of moving away from tradition or can never produce a decent GUI is just ignorant.

        For the most part I do agree that Apple does produce much nicer hardware than the average PC. But even in this case the exeptions

        • by skadacl ( 199126 )

          Perhaps not incapable, but at the very least _currently_ unwilling. FOSS is still gaining traction and staying with the status quo makes the transition easier for people. There are pros and cons to that: easier transition, yet innovative stagnation. Perhaps what's really needed is a radical paradigm-shift, something new and amazing that will draw people to it. If you build it, they will come ; )

      • And even after Apple is gobbling up the notebook market, I don't see many of the PC manufacturer so much as even copy them. Same plasticky, gimmicky shit notebooks as ever. Sure, Dell make copy MacBook Air with Adamo or whatever it's called (as useless as either were), and they may also make the shiny screens, or chicklet keyboards - but the bodies, the very first impression of a notebook on PCs has remains the same plasticky, unwiedly, fugly crap that they've been pushing out in 1998. No clean lines or anything like the Power Mac or moreso MacBook Pro. Boggles my mind.

        And I say this as someone that would like to see nice computers on the PC front as I work on a PC desktop. I recently got a hand me down desktop and it was fucking gaudy - LED lights and gauges everywhere, like a poor man's F1 racer in computer case form. Tried to find something minimalistic, and the nicest thing I could find was a black case version of das keyboard.

        *(I do love open source and open standards, but keep them the hell away from the GUI :D)

        Apple seems to be the only esthetic [wikipedia.org] company in IT today. The thought that making a computer or device look and feel good could help people feel more comfortable and so help them to better use those devices seems wholly foreign to the rest of the industry. Other companies can copy some aspects of the designs but they can't seem to grasp the philosophy behind it that makes it work.

        • Comment removed based on user account deletion
          • Why chose something that looks like a piece of shit when something beautiful costs $50 more? That's barely the cost of a meal out in San Francisco or Manhattan for a device you're going to be stuck using every day.

            You can also bet if the manufacturer was too idiotic to make their gadget even look halfway decent, they forgot a bunch of other stuff as well. I mean, if you can't even design a case that's not an eyesore, what about the really difficult engineering and design?

            • Because the cheap one costs $1, and I don't want to pay the 5000% markup for pretty plastic that still breaks? OK, Apple's markup isn't quite that bad, but it's significant for what you're getting. I'm writing this on a macbook on which the plastic has warped enough that the super-sexy DVD drive can no longer eject DVDs without some help from a screwdriver. It was fixed twice while this mac was under warranty, and the fact that they don't actually solve the problem with the part just tells me that Apple
          • Thank you.

            Exactly what I have been saying for years, nice to hear it from the mouth of a fanboi.

            "Apple makes fashion accessories."

            And for those of us with our sanity still intact:

            "Who gives a shit if a tool matches the colour of my man-bag."

            First off, grow up and cut that "fanboi" shit out. It makes you sound like a twelve year old.

            Second, you missed my point which was that good design can add to a product (follow that link in my previous post to the wikipedia entry for applied esthetics.) Since you talk about fashion let's make a fashion analogy. Pants are pants but you can buy pants with a fashionable cut that are nicer to look at and feel more comfortable. The fashion has added to both the utility (comfort) and the enjoyment (looks nice.) A

  • where Apple has all its stuff made is the world's largest consumer of semiconductors.

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