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Apple projected to be the world's biggest chip buyer in 2016, Samsung has its business cut out for it

Posted: , by Luis D.

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Apple projected to be the world's biggest chip buyer in 2016, Samsung has its business cut out for it
Research powerhouse Gartner released a report which summarizes the semiconductor consumption habits of notable mobile technology vendors throughout the past year. There are some interesting and very telling takeaways to be had from it. Unsurprisingly, Samsung and Apple usurped the top two places for the fifth consecutive year, with no less than 17.7% of the world's semiconductor business ($59 billion worth of chips) shared between the two.

Meanwhile, Samsung's semiconductor arm is killing it since it now manufactures premium chips for both Apple and Qualcomm. Selling the production to two of the world's largest silicon consumers should help Samsung stay afloat for the foreseeable future, even though semiconductor business is in decline. The Top 10 companies ranked by Gartner bought $123 billion worth of chips, accounting for 36.9 percent of worldwide revenue in 2015. This was down from 37.9 percent in 2014.

Speaking of decline, we get to learn that the Koreans' demand for chips actually decreased by some 3.6% in 2015, while that of Apple increased by 7.1% (and ended up responsible for an $800 million YoY increase in consumption). At this rate, the iPhone maker is projected to become the world's largest chip consumer by the end of 2016. Is Apple on a roll or what?

For those who like numbers, here are the complete stats provided by Gartner.

2014 Ranking2015 RankingCompany20142015Growth (%) 2015 Market
Share (%)
11Samsung30,98929,867-3.68.9
22Apple27,17729,1167.18.7
43Lenovo13,74313,329-34
54Dell10,88010,686-1.83.2
35HP Inc.15,6168,634-44.72.6
76Huawei6,0407,02016.22.1
67Sony7,6316,947-92.1
-8HP Enterprise06,473-1.9
99LG Electronics5,7435,533-3.71.7
810Cisco Systems5,8175,430-6.71.6
Others216,695210,684-2.863.1
Total340,331333,718-1.9100

source: Gartner

19 Comments
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posted on 03 Feb 2016, 07:24 4

1. kkmkk (Posts: 463; Member since: 06 May 2013)


it is strange how your biggest enemy is also your best friend

posted on 03 Feb 2016, 07:55 10

4. TheStanleyFTW (Posts: 243; Member since: 20 Feb 2013)


Naah mate. It's called business

posted on 03 Feb 2016, 15:36

14. nctx77 (Posts: 1697; Member since: 03 Sep 2013)


You took the words right out of my mouth.

posted on 03 Feb 2016, 07:33 1

2. DRS1977 (Posts: 418; Member since: 27 May 2015)


"Samsung has its business cut for it"

The title should read "cut out for it", not cut "cut for it".

Anyways, carry on...

posted on 04 Feb 2016, 03:37

19. razmahtaz001 (Posts: 57; Member since: 11 May 2013)


yes sir...

posted on 03 Feb 2016, 07:35

3. bobby2803 (Posts: 32; Member since: 28 Jun 2014)


Its the ability of samsung management to look for money making oppertunity.

posted on 03 Feb 2016, 08:43

7. Shocky (Posts: 2232; Member since: 16 May 2012)


It's the ability of most good management to do that, surely.

posted on 03 Feb 2016, 08:37

5. submar (Posts: 350; Member since: 19 Sep 2014)


I m taking money from enemy

posted on 03 Feb 2016, 08:43 5

6. darkkjedii (Posts: 19734; Member since: 05 Feb 2011)


Frenemies, but the stupid fanboys just don't see how they drive business for both.

posted on 03 Feb 2016, 09:47 5

9. nepalisherpa (Posts: 209; Member since: 17 Jul 2015)


"Stupid fanboys" seems redundant. "Fanboys" alone means stupid. ;)

posted on 03 Feb 2016, 09:32 1

8. miket1737 (Posts: 2366; Member since: 17 Mar 2013)


Samsung: we give you them good cuts of them wafers, we got that good ish,

posted on 03 Feb 2016, 16:03

15. darkkjedii (Posts: 19734; Member since: 05 Feb 2011)


Lmao. I see what you did there.

posted on 03 Feb 2016, 10:14

10. sissy246 (Posts: 626; Member since: 04 Mar 2015)


Yeah just business, but I wish Samsung could tell apple "GO WHERE THE SUN DOESN'T SHINE "

posted on 03 Feb 2016, 19:57

16. ibend (Posts: 3501; Member since: 30 Sep 2014)


where the sun doesnt shine?
you mean inside steve's grave? :-/

posted on 03 Feb 2016, 10:24 2

11. Baracus (Posts: 223; Member since: 15 Sep 2012)


Samsung needs to keep doing business with Apple to make back some of the money that corrupt Judge Lucy Koh keeps giving to Apple.

posted on 03 Feb 2016, 14:45

13. TechieXP1969 (Posts: 8344; Member since: 25 Sep 2013)


No they don't. Apple needs to keep doing business with Samsung because they have no one else who can yield product in the same numbers or quality

posted on 03 Feb 2016, 13:49

12. TechieXP1969 (Posts: 8344; Member since: 25 Sep 2013)


So Apple is the biggest buyer of chip, but Samsung is the biggest users because they use them in all their own phones with the small exception fo the SnapDragon models.

Looks like Samsung is makign plenty of money on chips. That is why phones are a small part of their income.

Samsung could drop every phone they make and simply just sell the Note, S, J and A series and still sell more phones than any single one OEM and have a better profit margin because they would have killed so much overhead creating useless ridiculous phone models.

posted on 03 Feb 2016, 20:00

17. ibend (Posts: 3501; Member since: 30 Sep 2014)


we still need S series to lead another flagship to the right way...

posted on 03 Feb 2016, 23:52

18. martyrayen (Posts: 6; Member since: 25 Jan 2016)


apple provide the best user interface

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