Apple is in hot war over intellectual rights with Samsung but its dependance on the Korean hardware giant’s production is just going to grow in 2012. While in 2011 Apple spent nearly $7.8 billion on Samsung-made parts, in 2012, this number will grow further to $11 billion.
“The amount of the current contract is around $9.7 billion, butis expected to rise to $11 billion by the end of this year as Apple is planning to release a smaller iPad, probably with a 7.85-inch screen, and to sell more of its MacBook Air PCs using Samsung’s faster solid state drive storage,” a Samsung executive told The Korea Times speaking on the condition of confidentiality.
Now, while the focus of the executive’s message the fact that Apple will spend more on Samsung parts, having a confirmation of the real possibility for a 7.85-inch iPad from a Samsung official is probably even bigger news.
Samsung is known for making computer memory chips, NAND flash memory, mobile processors and displays. It’s said to be investing more into new screen technologies, a key to a company’s success on the mobile market.
Apple is tied in contracts with Samsung until 2014, and the sum that it spends on hardware is likely to only increase by that time. So while on one hand Samsung shouldn’t be pleased with the success of the iPad over its Galaxy Tabs and Notes, on the other hand, it’s still making profits out of Apple’s gadgets as well.