Apple had been looking for another supplier to provide them chips for its iPads and iPhones yet remained dependent to Samsung.
Wall Street reported that Apple Inc. had
finally signed a deal this month with Taiwan Semiconductor
Manufacturing Co. to produce chips for them for 2014. The information
came from the officials of the manufacturer. There had been delays for
the two to close the deal due to glitches that Apple had identified
while testing the chips. The manufacturer had to revamp it time after
time for it to pass Apple’s speed and power standards.
However, despite this new team up, one
of Apple executives stated that Samsung will still become their major
supplier of processors and memory chips. Awkward as it seems, Apple and
Samsung needed to separate their business issues for another deal. Both
company refused to give comments if this report is true.
Well, these companies had an established
partnership which goes back to 10 years ago before Samsung decided to
venture on the smartphone industry. Unfortunately, Samsung had beaten
Apple in the past year in the production of units. Apple executives had
been looking for another supplier to replace Samsung because they would
like to cut their dependence from their rival. This makes sense because
why would you want to make business with someone you have been
countersuing.
Apple had already started trimming down
their dependence by not getting screens from Samsung and also started
buying memory chips from other suppliers. However, their microprocessor
which is the main component of their iPads and iPhones are still from
Samsung.
Apple has no choice because Samsung is
still the world’s biggest maker of the processors, memory chips and
high-resolution screens that can pass Apple’s standards right on.
Why would Samsung not want to cut
business with Apple? Analysts say that it’s purely how businesses work.
Apple is their major buyer and losing the iPad maker means losing
revenue. In fact, the supply ordered by Apple from Samsung last year was
worth $10 billion according to Mark Newman, an analyst at Sanford
Bernstein in Hong Kong.
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