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

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

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17 Comments

1. kkmkk

Posts: 699; Member since: May 06, 2013

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

4. TheStanleyFTW

Posts: 252; Member since: Feb 20, 2013

Naah mate. It's called business

14. nctx77

Posts: 2540; Member since: Sep 03, 2013

You took the words right out of my mouth.

2. DRS1977

Posts: 679; Member since: May 27, 2015

"Samsung has its business cut for it" The title should read "cut out for it", not cut "cut for it". Anyways, carry on...

19. razmahtaz001

Posts: 501; Member since: May 11, 2013

yes sir...

3. bobby2803

Posts: 32; Member since: Jun 28, 2014

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

7. Shocky unregistered

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

5. submar

Posts: 713; Member since: Sep 19, 2014

I m taking money from enemy

6. darkkjedii

Posts: 30962; Member since: Feb 05, 2011

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

9. nepalisherpa

Posts: 338; Member since: Jul 17, 2015

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

10. sissy246

Posts: 7065; Member since: Mar 04, 2015

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

16. ibend

Posts: 6747; Member since: Sep 30, 2014

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

11. Baracus

Posts: 223; Member since: Sep 15, 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.

13. TechieXP1969

Posts: 14967; Member since: Sep 25, 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

12. TechieXP1969

Posts: 14967; Member since: Sep 25, 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.

17. ibend

Posts: 6747; Member since: Sep 30, 2014

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

18. martyrayen

Posts: 6; Member since: Jan 25, 2016

apple provide the best user interface

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