Apple Inc brought down the order for the memory chips for the iPhone 5 which is expected to launch somewhere around 12th September in its event “It’s Almost Here.” Samsung is the core supplier of chips to Apple. Samsung also offers flat screens, micro processors as well as memory chips, including NAND chips and DRAM chips for various Apple devices such as iPod, iPad and iPhone.
Why was the order cut down?
Because Apple is planning to diversify the memory chip supply line, therefore Apple is planning to cut down the order from Samsung. Despite all this, Samsung still remains on the top of the list of early suppliers for iPhone 5.
Who will supply the chips now?
According to the Korean Economic Daily, Apple dropped down Samsung from memory chip suppliers list for its first batch of iPhone 5 and picked up Toshiba Corp, Elpida Memory as well as Korea’s SK Hynix for supply of NAND chips as well as DRAM chips.
What Reuters say?
A source in the Reuters quotes, “Samsung is still on the list of initial memory chip suppliers (for new iPhones). But Apple orders have been trending down and Samsung is making up for the reduced order from others, notably Samsung’s handset business.”
Competition from Samsung
The handset business of Samsung has picked up rapidly, especially after the launch of Galaxy products which bring in almost 2/3rd profits to the company overall. It is also seen as the driving component of the sales ranging from the Micro Processors to the Displays. Yesterday, Samsung also unveiled that the sale of Galaxy S III has topped 20 million mark since its debut.
Soaring relationship between Apple and Samsung
No one needs to be reminded about the soaring relationship of the two companies. Their global patent fights can also be the speculated cause of the cut down. Analysts say that the purchases of the NAND as well as DRAM chips of Apple from Samsung have dropped down to a great extent and now they only make up approx 2.5% of 2012 earnings of Samsung.
All this only shows the rising tiff amongst the two market leaders- Apple and Samsung. The new iPhone, i.e. iPhone 5 is expected to be launched by Apple in its upcoming event. The new iPhone might be equipped with some of the improvements including a bigger screen as offering better display. Consumers are eagerly waiting for the launch of iPhone 5.