Apple and Samsung won't pass the chips

A new report by Gartner reveals that Apple and Samsung were the top two chip buyers in 2013. The pair purchased $53.7 billion of semiconductors last year, up $7 billion or 15.2% over 2012's numbers. The pair accounted for 17% of 2013 chip sales overall. That is up from their chip purchases equaling 12% of all chip sales in 2011. For three years in a row, the rivals have been at the top of the chip buyers' list. Masatsune Yamaji, principal research analyst at Gartner, said that the numbers show why Apple and Samsung's chip buying have pricing implications for the entire industry.


Chinese manufacturer Lenovo moved into fourth place on the top ten semiconductor buyers list, thanks to its PC line and its smartphone business in China. And Huawei took a position in the top ten for the first time. The top ten purchased $114 billion worth of silicon last year, making up 36% of semiconductor manufacturer's revenues. This was up from $105 billion and 35% respectively, in 2012.

Gartner sees growth by Chinese based manufacturers leading to more demand for semiconductors. These companies are expected to see their business increase not only in China, but also in emerging markets like Latin America and Africa. But Gartner says that the semiconductor producers are having a tough time because the popularity of smartphones and tablets has the public turning to them instead of PCs when possible. The amount of silicon in a smartphone or tablet is measurably less than the amount used in a PC, and this is hurting demand for semiconductors.

source: DigiTimes