|In my mind UDC has greater leverage in getting the sweetheart deal this time.|
At the get-go when Samsung was the only play in town, there's not much leverage.
But today it's different. As handyman pointed out (and actually I do like the pick and shovel description because it's easy to understand), folks are lined up at the door to get a piece of the action.
And the UDC strategy of maintaining a large cash stockpile will help in achieving a happy ending for the negotiation story.
Why? If things truly come to a stall, which I don't think it will and UDC is 'forced' to play hardball which again is a low probability event, which company has more to lose by digging its heel in the ground?
UDC can go without Samsung for a year with its cash and revenue from LG. How long can Samsung hold out not being able to sell phones and screens given all it's capital expenditure? And if Samsung can't deliver to Apple, Apple will sue.
There are other girls on the dance floor now. UDC can pick and choose. Of course being the respectful business folks that work at UDC, UDC team will seek to achieve amicable terms without Samsung feeling that it's been cornered into the terms and conditions because after all, who doesn't want a long-lasting mutually beneficial business relationship?
Samsung management on the other hand, should learn from its LG brethren (they missed the first lesson on how to build OLED TV and here's an opportunity to not fumble on a major decision) and be wise about signing on to reasonable terms so that it doesn't end up on the dance floor, alone.
The only thing I'd ask UDC mgmt team to remember is follow Teddy Roosevelt's style of diplomacy where one "speaks softly, but carry a big stick".