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

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.

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

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55 Comments

1. jroc74

Posts: 6023; Member since: Dec 30, 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.

2. g2a5b0e unregistered

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.

4. jroc74

Posts: 6023; Member since: Dec 30, 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.

5. g2a5b0e unregistered

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.

22. remixfa

Posts: 14605; Member since: Dec 19, 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.

52. jroc74

Posts: 6023; Member since: Dec 30, 2010

edit...

23. troutsy

Posts: 383; Member since: Feb 17, 2012

You're grossly misunderstanding the way business accounting works.

15. b.positive

Posts: 12; Member since: Apr 23, 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! ;))))

18. joey_sfb

Posts: 6794; Member since: Mar 29, 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!

25. -box-

Posts: 3991; Member since: Jan 04, 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)

29. remixfa

Posts: 14605; Member since: Dec 19, 2008

the vast majority of internal parts are from Samsung. Besides, didnt Apple buy an Israeli chip maker last year?

35. gallitoking

Posts: 4721; Member since: May 17, 2011

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

32. gallitoking

Posts: 4721; Member since: May 17, 2011

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

37. chaoticrazor

Posts: 2347; Member since: Aug 28, 2012

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

46. gallitoking

Posts: 4721; Member since: May 17, 2011

I like to keep it 50-50

54. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

LMAO!

42. remixfa

Posts: 14605; Member since: Dec 19, 2008

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

45. gallitoking

Posts: 4721; Member since: May 17, 2011

they dont have the Nike logo anymore..

50. gwuhua1984

Posts: 1237; Member since: Mar 06, 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....

55. elandrumiii

Posts: 109; Member since: Mar 20, 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.

3. The_Godfather

Posts: 196; Member since: Apr 26, 2012

Another failure for aPpLe.....!!

6. whysoserious

Posts: 318; Member since: Jul 20, 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.

8. g2a5b0e unregistered

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

11. whysoserious

Posts: 318; Member since: Jul 20, 2012

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

33. gallitoking

Posts: 4721; Member since: May 17, 2011

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

17. CanYouSeeTheLight

Posts: 1122; Member since: Jul 05, 2012

That analogy sir was epic, you made my day!

20. networkdood

Posts: 6330; Member since: Mar 31, 2010

lollers!

38. gwuhua1984

Posts: 1237; Member since: Mar 06, 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...

7. pikapowerize

Posts: 1869; Member since: May 03, 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?

9. xtian1103

Posts: 364; Member since: Feb 11, 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?

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