So apple can buy the CPU for it's iPad from Samsung for less than Samsung can????
The numbers check out.
Related readings
"Using transfer pricing in decision making - Nuts and Bolts of Business": http://bit.ly/f0xBb0
Managerial Accounting Transfer Pricing Lecture Notes, UIC: http://bit.ly/fhaoUM
Failure to respect these divisions is one reason Sony failed in the consumer electronics space against the iPod. It allowed the entertainment and media side of the company to impose ATRAC copy protection and other kinds of DRM on the consumer electronics division of the company, which resulted in a much less compelling (compared to the iPod and other music players which used less draconian DRM measures) network walkman line of products.