Samsung and Apple spent $61.7 billion on semiconductor chips in 2016

Samsung and Apple spent $61.7 billion on semiconductor chips in 2016
Samsung and Apple make the most money selling computers of different shapes and sizes, so it's no surprise the two gobbled up a significant share of the global semiconductor chip market – for the sixth consecutive year, no less.

According to stats published by Gartner, the two spent a combined $61.7 billion (up $400 million from 2015) and bought 18.2% of the world's semiconductor chips in 2016. Principal research analyst Masatsune Yamaji commented that Samsung and Apple "continue to exert considerable influence on technology and price trends for the wider semiconductor industry, (but) their impact has lessened due to falling expectations for future growth."

The world's top-ten chip buyers rank consists of four US companies, three Chinese companies, two South Korean companies, and a Japanese one. 2016 saw Cisco Systems drop out from the Top 10, replaced by China's BBK Electronics – owner of smartphone makers Oppo, Vivo, and OnePlus.

ALSO READ

FEATURED VIDEO

11 Comments

1. kiko007

Posts: 7493; Member since: Feb 17, 2016

Damn....

4. sgodsell

Posts: 7209; Member since: Mar 16, 2013

The real thing is why is Apple sensationalized again. Especially when talking about semiconductor chips. This article is a joke. Apple doesn't make their own semiconductors. They get other companies like Samsung, and others to make chips for them. Samsung also makes chips for almost every other OEM as well. Not to mention they are exclusive for LPDDR4X ram right now. They even make Qualcomm's SoCs, modem chips and so much more. Let's get even more real. Apple is really an iPhone company, especially when 69% of their revenue is from their iPhones. 9% from their Mac's. Now last year (2016) Apple sold 215 million iPhones. The total amount of smartphones sold in 2016 was over 1.48 billion smartphones. Simple math can easily prove that Apple doesn't even come close to what Samsung spends. 215 million iPhones multiply by $30 for each Ax SoC. That works out to 6.4 billion dollars. Mac's use Intel processors, so those tend to be a lot more money, but they can vary greatly in price. So on average we will say Apple paid $300 per Intel processor. Apple sold roughly 27 million Macs, which works out to spending and giving 8.1 billion to Intel. So does anyone truly believe that Apple spends anywhere close to Samsung in semiconductors. Don't forget that Samsung manufactures semiconductors. Apple does not.

8. icr8du

Posts: 15; Member since: Feb 03, 2015

The article is more about the value of the chips they use in the devices they sell. Which is why 18.2% market share is referenced!

9. ctdog4748

Posts: 797; Member since: Mar 05, 2016

You are a fool, to put it gently. Apple employs many top talent engineers and scientists that develop the needed semiconductor components. These people work hand in hand with many different merchant suppliers, to ensure that Apple gets exactly what they need. Don't even bother with a retort, it's painfully clear you are in no way employed or affiliated with any aspect of the semiconductor field, and I no longer waster time bantering with fools on this site.

11. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

You almost made me wan a shed a tear that was good. But isnt it fair tp say that Apple still has to buy them? I mean Apple ks paying to have them made, its basically the same as buying. Samung both produced and buys. But think of this too. You are right,samsung dows produce chips for Qualcomm. Which im sure means Samsung gets to buy the SnapDragon cheap than its own Exynos. While getting paid foe QC chip fabricating. Apple also benefits from another angle. They are a ARM licensee, but they also own a percentage of the company which means anyome else who license from ARM, Apple gets a piece. I agree they dont spend what Samsung does, but both have unique positions.

2. ph00ny

Posts: 2026; Member since: May 26, 2011

In every other article, they would have broke the figures down for apple and samsung. I wonder why... *hint* one company hit 31.667 billion and another hit 29.989 billiion *hint*

5. DellB

Posts: 55; Member since: Jun 07, 2015

Lol. Samsung probably hit the greater number. iPhonearena is a joke.

3. xondk

Posts: 1904; Member since: Mar 25, 2014

Well Samsung makes the majority of their own chips so these numbers on their own do not really say much, heck Samsung makes a lot of the chips Apple use so.... clarifications are needed?

6. joeytaylor

Posts: 957; Member since: Feb 28, 2015

Off topic question.....has anyone heard much about the new exynos SoC.....is Samsung even making it

10. Subie

Posts: 2354; Member since: Aug 01, 2015

That's good question! Maybe they're going strictly with Qualcomm seeing as they teamed up on the SD835. https://www.qualcomm.com/news/releases/2016/11/17/qualcomm-and-samsung-collaborate-10nm-process-technology-latest-snapdragon

7. mikehunta727 unregistered

Apple does make some extremely beast SoC's and it does show. Kudos where they deserve it. Samsung is 2nd-3rd in SoC desig performance but does make things like RAM and etc for other SoC vendors and SoCs and also manufacture SoCs on their semiconductor processes

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.