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Source: Apple cuts back on memory chip orders from Samsung for Apple iPhone 5

Posted: , by Alan F.

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Source: Apple cuts back on memory chip orders from Samsung for Apple iPhone 5
According to an unnamed industry source quoted in Friday's Korea Economic Daily, Samsung's name has been removed by Apple from a list of memory chip suppliers for the first batch of the new iteration of the Apple iPhone. The source says that the Korean manufacturer's name is still on a list of initial suppliers for the Apple iPhone 5. Samsung delivers a number of parts for the Apple iPhone including processors, flat screens and memory chips. It is the memory chips where Apple is seeking to diversify by replacing Samsung's DRAM and NAND chips for those made by Toshiba, Elpida and SK Hynix.

Another source for Reuters says that Apple still has Samsung's name included as a vendor for memory chips although orders from Apple have been declining. Samsung has made up the shortfall by selling memory chips to its own handset business which has been soaring. Samsung's smartphone business makes up about two-thirds of the company's profit. Just the other day, Samsung announced that it has sold 20 million units of the Samsung Galaxy S III in 100 days, three times faster than its predecessor.

Apple is ordering fewer DRAM chips from Samsung

Apple is ordering fewer DRAM chips from Samsung

Reuter's source denied speculation that the drop off in orders to Samsung from Apple was due to the recent patent war between the two firms that recently led to a jury awarding Apple $1.05 billion from Samsung for patent infringement. Instead, Apple's desire not to rely on just one source for important parts has led to this search for diversification.

The Korean Economic Daily source said that Samsung's name has been removed from a list of battery suppliers for the Apple iPhone 5 as the Cupertino based firm has selected China's Amperex Technology Ltd and Japan's Panasonic Corp to deliver the power source for the 6th generation of the iconic smartphone. But the Korean tech titan is the sole source of microprocessors for both the Apple iPhone and the Apple iPad which gives Samsung some degree of leverage against Apple.

According to Morgan Stanley, Samsung should bring in $13 billion in component sales next year, resulting in $2.2 billion in operating profits.

source: Reuters

55 Comments
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posted on 06 Sep 2012, 23:30 3

1. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


Yea...I figured this was gonna happen.

In Apple's defense...if they get the whole amount or more from the verdict....it would be a waste of money to still buy parts from Samsung.

posted on 06 Sep 2012, 23:33 10

2. g2a5b0e (Posts: 2105; Member since: 08 Jun 2012)


That doesn't make any sense. It would be a waste of money to still buy parts from Samsung? They need those parts, so they have to spend the money regardless. Whether or not they choose to buy the parts from Samsung is their business, but it wouldn't be a waste of money as you put it.

posted on 06 Sep 2012, 23:38 2

4. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


If you owe me money...and you own a store. And I buy products from your store....we basically just moving the same money back n forth.

posted on 06 Sep 2012, 23:42 7

5. g2a5b0e (Posts: 2105; Member since: 08 Jun 2012)


I hear what you're saying. It's still not a waste. If it's a product you need, the money needs to be spent regardless. Doesn't matter who it goes to.

posted on 07 Sep 2012, 07:16 3

22. remixfa (Posts: 13902; Member since: 19 Dec 2008)


no, because you buy products from my store does not mean you dont owe me money anymore. The store's bank account and my bank account are not the same account.
You still owe me every dollar you owed me before shopping at remix-mart. Thank you, come again.

posted on 07 Sep 2012, 17:04

52. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


edit...

posted on 07 Sep 2012, 07:19 5

23. troutsy (Posts: 241; Member since: 17 Feb 2012)


You're grossly misunderstanding the way business accounting works.

posted on 07 Sep 2012, 03:27 11

15. b.positive (Posts: 12; Member since: 23 Apr 2012)


Processor, memory chips, display, battery,... Apple should put a Samsung sign instead an apple on their gadgets!
I am sure, Apple fans would love that! They just dont want to admit! ;))))

posted on 07 Sep 2012, 05:49 2

18. joey_sfb (Posts: 2571; Member since: 29 Mar 2012)


Didn't know samsung provide all the critical parts. Only the device shell and the home button is made by Apple.

What a joke!

posted on 07 Sep 2012, 07:51 1

25. -box- (Posts: 3714; Member since: 04 Jan 2012)


Those aren't even technically made by apple. Apple just designs it. The OS is Chinese, the body is Chinese, the components are from scattered sources, the glass is possibly Corning, but apple doesn't like confirming outside suppliers for its magical devices (and the failure rate of iDevice screens makes me doubt it is actually Gorilla Glass)

posted on 07 Sep 2012, 09:17 2

29. remixfa (Posts: 13902; Member since: 19 Dec 2008)


the vast majority of internal parts are from Samsung.

Besides, didnt Apple buy an Israeli chip maker last year?

posted on 07 Sep 2012, 11:29 1

35. gallitoking (Posts: 4682; Member since: 17 May 2011)


so remix will you buy the iphone ..hey is made by Samsung ..right?

posted on 07 Sep 2012, 11:21 1

32. gallitoking (Posts: 4682; Member since: 17 May 2011)


so you think the Jordans are made by Michel Jordan. ... exactly !

posted on 07 Sep 2012, 11:37

37. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


gallitoking- do you ever talk sense or is it just stupid crap with you

posted on 07 Sep 2012, 12:32 2

46. gallitoking (Posts: 4682; Member since: 17 May 2011)


I like to keep it 50-50

posted on 07 Sep 2012, 21:16

54. BattleBrat (Posts: 1038; Member since: 26 Oct 2011)


LMAO!

posted on 07 Sep 2012, 12:16

42. remixfa (Posts: 13902; Member since: 19 Dec 2008)


they are called "Nike Air Jordans" actually. They just shortened the title on the shoe.

posted on 07 Sep 2012, 12:31 1

45. gallitoking (Posts: 4682; Member since: 17 May 2011)


they dont have the Nike logo anymore..

posted on 07 Sep 2012, 14:09 1

50. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)


Air Jordan is designed and produced by Nike.
Is iPhone designed and produced by Samsung?

Jordan brand is a subsidiary of Nike
Is Apple brand a subsidiary of Samsung?

Bad bad examples....

posted on 09 Sep 2012, 07:06

55. elandrumiii (Posts: 109; Member since: 20 Mar 2010)


Air jordans like every other thing by "American " companies are basically made in asian countries. And apple did say that there are no american factories with right equipment to make their phones even Moto Google is made off continent and no the OS is not and was not made in an asian country just like Andriod wasnt. Just hate dont insinuate.

posted on 06 Sep 2012, 23:37 16

3. The_Godfather (Posts: 146; Member since: 26 Apr 2012)


Another failure for aPpLe.....!!

posted on 06 Sep 2012, 23:50 22

6. whysoserious (Posts: 316; Member since: 20 Jul 2012)


When my cousin worked at McDonalds, he used to put booger on the burgers when he is pissed off at a certain customer.

Maybe Apple is afraid that Samsung might put boogers on their chipsets, too.

posted on 07 Sep 2012, 00:12 8

8. g2a5b0e (Posts: 2105; Member since: 08 Jun 2012)


I wasn't sure where you were going with this at first, but that actually ended up being a great analogy.

posted on 07 Sep 2012, 01:05 5

11. whysoserious (Posts: 316; Member since: 20 Jul 2012)


Well, I know the booger part was pretty disgusting but you get the picture.

posted on 07 Sep 2012, 11:27 1

33. gallitoking (Posts: 4682; Member since: 17 May 2011)


the picture i got is not to buy at Mc Donalds were douches worked there

posted on 07 Sep 2012, 05:05 3

17. CanYouSeeTheLight (Posts: 731; Member since: 05 Jul 2012)


That analogy sir was epic, you made my day!

posted on 07 Sep 2012, 07:13 1

20. networkdood (Posts: 6250; Member since: 31 Mar 2010)


lollers!

posted on 07 Sep 2012, 12:02

38. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)


Great... now I have to worry about McDonald workers putting extra ingredients in my burgers too? As if knowing what some of the workers does to the Jack in the Box white sauce at night wasn't enough already...

posted on 07 Sep 2012, 00:01 2

7. pikapowerize (banned) (Posts: 1869; Member since: 03 May 2012)


i think these company will just destroy itself...

i think buying an iPhone will be the same like buying a samsung phone, since most of the phone's inside are from samsung..

i think apple is doing the right thing... not hating on samsung here but its time for them to look for other manufacturers than relying on samsung too much.. like they did to google, they are not using google service on iOS 6, no maps, no search engine and no native youtube app..

but can they pull the act together?

posted on 07 Sep 2012, 00:58

9. xtian1103 (Posts: 352; Member since: 11 Feb 2012)


this isn't looking good. apple will surely suffer with their phones performance. on the other hand, samsung would likely lose their biggest customer. wonder how the stocks would react after this?

posted on 07 Sep 2012, 11:28

34. Jobes (Posts: 364; Member since: 27 Oct 2011)


It wouldn't hurt Samsung Mobile one bit, no affect whatsoever.

posted on 07 Sep 2012, 01:01 13

10. Bluesky02 (Posts: 1439; Member since: 05 Dec 2011)


Oh dear look how this is ugly
- Apple released iPhone
- Samsung Made Part for iPhone
- We even saw Google Eric at iPhone Launch with Steve Jobs
- Google Release Android
- Apple Mad
- Samsung Copy iPhone with Samsung Galaxy S
- Apple super mad
- Apple threaten to sue Samsung
- Samsung accepts to deal via compensations and licenses
- Apple refuse deal and threaten to go to court
- Samsung learnt lesson to stop copying
- Now Samsung sales outpace iPhone
- Apple mega ultra mad
- Sue them to court with judge Koh
- Apple wins, Samsung loss
- Now Apple cutting orders from Samsung, their best and most effective chips manufacturer
- Samsung losses sales on chip and their biggest customer, Apple loss very good quality chips
- Sharp is complaining having problem making next iPhone screen
Finally everything is going so ugly

While Windows Phone is shining right now

posted on 07 Sep 2012, 01:36 6

12. phljcnth (Posts: 255; Member since: 30 Apr 2012)


Kind of disagree with the last part.

posted on 07 Sep 2012, 02:17 10

13. richardyarrell2011 (banned) (Posts: 510; Member since: 16 Mar 2011)


One thing is for sure Samsung doesn't need apple or Cupertino for anything. Samsung is the leader of technology not apple. Samsung is the one with the highest market share not apple. And it's Samsung with the BEST SMARTPHONES ON THE MARKET PERIOD. Apple can only wish they were Samsung or even had anything close to the Galaxy S3 or Galaxy Note or Galaxy Note 2.

posted on 07 Sep 2012, 07:14 2

21. networkdood (Posts: 6250; Member since: 31 Mar 2010)


When it comes to best smartphone - Apple is getting further behind, and the newest iphone with its same awesome shape an iOS look should no doubt keep it that way.

posted on 07 Sep 2012, 12:10

40. gallitoking (Posts: 4682; Member since: 17 May 2011)


you forget Samsung is a supplier

posted on 07 Sep 2012, 02:32 2

14. Problacklist.One (Posts: 15; Member since: 01 Dec 2010)


This Is Exactly my Point. First Apple Buys Phone Part Samsung uses in their phone. Second Apple Sues Samsung with Stupid Lawsuit so they can get their money back so they can buy more parts from Samsung. And The Cycle Continues.

posted on 07 Sep 2012, 04:21 5

16. willard12 (Posts: 703; Member since: 04 Jul 2012)


I'm not a Samsung owner. But this has to mean that their handsets will always be better than the iPhone. Samsung knows exactly what is going into the iPhone and what the Iphone's capabilities are hardware-wise. As the iPhones primary manufacturer, they will always be able to one-up Apple. Yet, certain people who own iPhones will always refer to Samsung as cheap.

posted on 07 Sep 2012, 06:30 2

19. Shino (Posts: 173; Member since: 23 Jul 2012)


Hehe! If Apple stop buying parts from these yellow guys, things are looking gloomy for Shamshung.:)

posted on 07 Sep 2012, 09:06 2

28. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


might suprise you but samsung dont rely on apple to keep them in profit. if apple stopped buying parts of samsung the only company that will be affected will be apple . samsung wont loose either way

posted on 07 Sep 2012, 11:37 2

36. Jobes (Posts: 364; Member since: 27 Oct 2011)


First off.. wtf racist much? Second.. Samsung Mobile like I said prior.. not affected one bit. So Apple decides to cut the cord that ties them to Samsung there is a reason they buy from Samsung lol.. quality chips and a good price. If Apple wants to remove Google and Samsung from their products what good does it do? Their relationship is not nearly as symbiotic as you would think.

posted on 07 Sep 2012, 12:05 1

39. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)


Hey... it's okay for me to make fun of Asians cause I'm Asian...

When you do it... it's offensive... and you're not even funny!

posted on 07 Sep 2012, 07:37 2

24. whysoserious (Posts: 316; Member since: 20 Jul 2012)


@Shino You racist b-tard! Our skin is not yellow, it's just... rosy-Asian style.

posted on 07 Sep 2012, 14:13 1

51. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)


You're right...

Plus... there's a medical word for yellow skin... jaundice, which ANYONE can be yellow skinned, NOT JUST ASIANS. HAH!

I don't feel so offended anymore...

posted on 07 Sep 2012, 08:29 1

26. rd_nest (Posts: 684; Member since: 06 Jun 2010)


Apple's purchases of mobile DRAM and NAND chips from Samsung have fallen significantly and now only account for around 2.5 percent of Samsung's 2012 earnings.. That's nothing compared to Samsung's handset business.

posted on 07 Sep 2012, 09:04 1

27. PhoneCritic (Posts: 355; Member since: 05 Oct 2011)


This will hurt both sides but most likely Apple will suffer the most as the other manufactures just don't' have the capacity that Samsung commands. So there are going to be shortages and delays of Apple products if they drop Samsung completely and quality may suffer.

posted on 07 Sep 2012, 09:42 4

30. Peter27 (Posts: 233; Member since: 13 Jul 2012)


Apple downgrading.

Removes google maps
Removes YouTube
Removes Samsung chips
Removes audience from siri
Removes compatibility by changing dock
Removes innovation from design
Removes exciting updates from ios6
Removes positive advertising by suing Samsung
Removes surprise by letting all the leaks
Removes cooperation by suing everyone

Well done Apple to your selfdestruction

posted on 07 Sep 2012, 12:15 1

41. gallitoking (Posts: 4682; Member since: 17 May 2011)


all that dont mean anything when you have the most iconig device on the market and the comany one of thwe most innoavting company 3 year in a row

posted on 07 Sep 2012, 12:16 3

43. remixfa (Posts: 13902; Member since: 19 Dec 2008)


oh you mean samsung?

posted on 07 Sep 2012, 12:24 1

44. gallitoking (Posts: 4682; Member since: 17 May 2011)


http://www.fastcompany.com/most-innovative-companies/2012/full-list

enought said

posted on 07 Sep 2012, 12:37 2

47. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


seriously do you understand the word 'innovate' im guessing not and most iconic device has to go to the nokia 3310 , come on who doesn't remember that.

stop with your stupid comment on how apple are some how this almighty company. you need a reality check

samsungs gs3 kicked the iphones ass in every way get over it

posted on 07 Sep 2012, 13:39 1

48. gallitoking (Posts: 4682; Member since: 17 May 2011)


hmmm lets see who do I listen to... the sales figures and the recognition Apple gets every year or a Apple hater.. hmmmm

posted on 07 Sep 2012, 13:43 1

49. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


sales figures ok so the more sales the better the product is...ok so with your logic the hula hoop was the greatest thing ever, it sold so many......

get real apple have lost the plot they cant compete anymore so there trying to tie up and control the market

and why am i an apple hater? for all you know i could be typing this on a mac.

so guess your an obsessed apple fanboy then

posted on 07 Sep 2012, 17:19 1

53. gallitoking (Posts: 4682; Member since: 17 May 2011)


never did I said Apple was the best because is not.. but to judge the best phone based on specs alone is not only wrong. is idiotic..lastly it irrelevant from where you type.. to say Apple has lost it. I bet you don't have a fact to back that up other than your personal opinion.. you can hate Apple all you want come Sept 12 you will be watching.

posted on 07 Sep 2012, 09:49 1

31. tchad78 (Posts: 10; Member since: 17 Aug 2012)


I was really considering getting the new iPhone, despite disliking the Os because I feel android phones are getting too bulky. Now Apple's new phone will be close to the size of my old Fascinate. Guess I'll just hold onto my old Bionic until I see if the Padfone comes to Verizon. Apple lost a possible convert.

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