Apple Cutting Back on Memory Chip Orders from Samsung

Reuters reports that Apple has been cutting back on memory chips orders from Samsung for its mobile devices, seeking to diversify its component supplier list by increasing orders from Toshiba, Elpida, and Micron. The move is said to be a long-term one not specifically tied to the recent court battles between Apple and Samsung.
Apple has been cutting its orders from Samsung as it tries to diversify its lines of supply for memory chips, although the South Korean firm remains on the list of initial suppliers for the new iPhone, the source told Reuters. The person declined to be named because the negotiations are confidential.

The Korea Economic Daily, citing an unnamed industry source, reported on Friday that Apple had dropped Samsung from the list of memory chip suppliers for the first batch of the new iPhone, whose release is widely expected to be announced on September 12.
Digitimes reported nearly identical news almost a year ago, supporting the notion that the move is part of a comprehensive strategy for Apple.


Late last month following the $1 billion verdict against Samsung in a U.S. court case addressing Apple's claims that Samsung had infringed upon its patents and copied its designs, Reuters noted that Samsung was working hard to compartmentalize the dispute by keeping the firm's CEO somewhat out of the loop in order to keep the dispute from spilling over and affecting Samsung's role as a component supplier for Apple and other companies.

Top Rated Comments

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Posted: 28 months ago
How can Apple not be working to remove Samsung from its supply chain?

Even putting aside the animosity from the lawsuits, I'm sure that Apple knows that there are leaks between the Samsung components and smartphone divisions. Having Samsung as a supplier give the smartphone division insight into what Apple is coming up with next.

Memory chips now, processors soon, displays soon after.

Bye bye Samsung ... so long to your biggest customer and the world's #1 consumer of chips.
Rating: 13 Votes
Posted: 28 months ago
Supplier diversification makes perfect sense, regardless of all the legal stuff going on between the two companies.
Rating: 11 Votes
Posted: 28 months ago
I just took a massive samsung.
Rating: 10 Votes
Posted: 28 months ago
Hoping we get a 128GB model this time around. Or at least make the entry phone have 32GB.
Rating: 9 Votes
Posted: 28 months ago
It has been said so many times, supplier diversification. Never put all your eggs in one basket.
Rating: 7 Votes
Posted: 28 months ago
Good, squeeze out those shady copycat thieving Samesung crooks! Apple gives Samsung the most revenue out of all Sammy's business relationships. Apple can get their screens and parts elsewhere, probably even better than what Sammy supplies. Samsung on the other hand, can't get Apple business from anyone but Apple.

Hit 'em where it hurts.
Rating: 5 Votes
Posted: 28 months ago
Apple is good at seeing a few steps ahead, and this is a pretty obvious decision anyway.
Rating: 5 Votes
Posted: 28 months ago

Reuters noted that Samsung was working hard to compartmentalize the dispute (http://www.macrumors.com/2012/08/27/samsung-working-to-keep-design-dispute-separate-from-component-contracts/)


Practically applied cognitive dissonance!
Rating: 4 Votes
Posted: 28 months ago

World number 1 consumer of chips? Are you serious?


Yep.

http://www.isuppli.com/Semiconductor-Value-Chain/News/Pages/Apples-Lead-in-Global-Chip-Purchasing-Expands-Consolidating-its-Influence-over-Electronics-Supply-Chain.aspx
Rating: 4 Votes
Posted: 28 months ago
That's a big "ouch" for Samsung if that continues ... Looks like a broken love ...
Rating: 4 Votes

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