Apple Tops List of Largest Semiconductor Buyers in 2010

isuppli semiconductor oems

Top 10 OEM Semiconductor Buyers
(Ranking by Revenue in Billions of U.S. Dollars)

According to a new research report from IHS iSuppli, Apple became the world's largest semiconductor buyer among original equipment manufacturers (OEMs) in 2010, leaping past HP and Samsung to comfortably grab the top spot with $17.5 billion in spending. Apple's surge has seen it rise from third place in 2009 and sixth place in 2008.

"Apple's surge to leadership in semiconductor spending in 2010 was driven by the overwhelming success of its wireless products, namely the iPhone and the iPad," said Wenlie Ye, Analyst for IHS. "These products consume enormous quantities of NAND flash memory, which is also found in the Apple iPod. Because of this, Apple in 2010 was the world's No. 1 purchaser of NAND flash."

Apple's lead over second-place HP, which stood at $2.3 billion in 2010, is expected to balloon to over $7.5 billion in 2011 as Apple expands its purchases to over $22 billion while other vendors remain relatively stagnant.

The report points out the marked differences between Apple's and HP's businesses, citing data showing that 61% of Apple's semiconductor spending in 2010 was on wireless products while 82% of HPs spending was on traditional computer products. That difference in focus, combined with the exploding smartphone and tablet market, has been driving Apple's run up the charts.

Apple is also cited for its ability to create an "ecosystem" of its products, with the company's tie-ins across devices leading consumers to stick with Apple for each new computer and mobile device purchase. This contrasts with the traditional PC business that offers no such ecosystem, thus leading to considerably lower brand loyalty across the range of devices and more fragmentation in purchasing patterns.

Top Rated Comments

NebulaClash Avatar
135 months ago
Wonder what the world would look like if it's all an Apple ecosystem...

A lot more efficient.
Score: 4 Votes (Like | Disagree)
chrmjenkins Avatar
135 months ago
Apple continues to rise and take over just about every metric we have for a tech company.

I hope other American companies take note. Apple is a company that takes pain to, and successfully defines itself through its product offerings and philosophy. That's what's necessary to differentiate yourself from many other companies in a global economy.
Score: 4 Votes (Like | Disagree)
*LTD* Avatar
135 months ago
Wouldn't be good for anyone to lose Apple as a customer . . .
Score: 2 Votes (Like | Disagree)
trilla12 Avatar
135 months ago
Wow... like i said last week, looks like it's definitely time to put some money into TSM Taiwan Semiconductor Manufacturing TSMC
Score: 2 Votes (Like | Disagree)
gnasher729 Avatar
135 months ago
So Samsung could bring out there own device and have an almost zero purchase cost as they would make most of the internals themselves.

No, they wouldn't have "almost zero" purchase cost. Creating silicon isn't cheap. There are immense investments to be made, and the production is definitely not free either. If Apple and Samsung use the same Samsung chip, then Samsung's cost is probably more than 95% of Apple's cost. If Samsung tried to charge Apple $100 for something that costs $90 to produce, then Toshiba would offer the same item for $95 and Apple would buy that.
Score: 1 Votes (Like | Disagree)
cvaldes Avatar
135 months ago
Do the chips in Macbook Airs also count in this? Since they are somekind of flash?
It includes chips in all Apple products, whether they be Macs, iDevices, or other things like Airport base stations or Apple-branded AC adapters.

Basically, if it has an Apple logo and it has parts made of silicon, it counts.
Score: 1 Votes (Like | Disagree)

Top Stories

beats updater

Apple Officially Retires Beats Updater Utility in Favor of Over-the-Air Firmware Updates

Wednesday September 30, 2020 2:30 am PDT by
Apple has officially retired Beats Updater, the software utility that lets users update the firmware of their Beats Wireless headphones, earphones, and speakers. Beats Updater allows users to plug their Beats product directly into the USB port of their computer to check for firmware updates online, but with Apple's growing tendency to deliver over-the-air updates to wireless products via iOS ...
calculatorapp

iOS 11 Bug: Typing 1+2+3 Quickly in the Calculator App Won't Get You 6

Tuesday October 24, 2017 2:03 pm PDT by
A bug in the built-in Calculator app in iOS 11 is getting some major attention this week, despite the fact that it's been around since iOS 11 was in beta testing. At issue is a calculator animation that causes some symbols to be ignored when calculations are entered in rapid succession. You can try it for yourself: Type 1+2+3 and then the equals sign into the Calculator app quickly. Due to...
iPhone 13 Dummy Thumbnail 2

Kuo: iPhone 13 to Feature LEO Satellite Communications to Make Calls and Texts Without Cellular Coverage

Sunday August 29, 2021 7:39 am PDT by
The iPhone 13 will feature low earth orbit (LEO) satellite communication connectivity to allow users to make calls and send messages in areas without 4G or 5G coverage, according to the reliable analyst Ming-Chi Kuo. In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant...
studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
original iphone

Phil Schiller Says iPhone Was 'Earth-Shattering' Ten Years Ago and Remains 'Unmatched' Today

Monday January 9, 2017 7:15 am PST by
To commemorate the tenth anniversary of the iPhone, Apple marketing chief Phil Schiller sat down with tech journalist Steven Levy for a wide-ranging interview about the smartphone's past, present, and future. The report first reflects upon the iPhone's lack of support for third-party apps in its first year. The argument inside Apple was split between whether the iPhone should be a closed...
m1 imac orange

New iMac Tidbits: Headphone Jack on Side, Ethernet Port on Power Adapter, Spatial Audio and WiFi 6 Support, No SD Card Slot

Wednesday April 21, 2021 6:38 am PDT by
Apple yesterday announced a completely redesigned 24-inch iMac with the M1 Apple silicon chip. The new iMac, the first major redesign of the Mac desktop computer since 2012, has several changes compared to the previous generation. In the aftermath of the event, a few new features and tidbits may have slipped under the radar, so we’ve compiled this list of some of the less-talked-about...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
affinity designer contour tool

Serif Updates Affinity Photo, Designer, and Publisher With New Tools and Functions

Thursday February 4, 2021 1:58 am PST by
Serif today announced across-the-board updates for its popular suite of Affinity creative apps, including Affinity Photo, Affinity Designer, and the Apple award-winning Affinity Publisher for Mac, all of which were among the first professional creative suites to be optimized for Apple's new M1 chip. "After another year which saw record numbers of people switching to Affinity, it's exciting to...
iPhone 13 Dummy Thumbnail 2

Full iPhone 13 Feature Breakdown: Everything Rumors Say We Can Expect

Tuesday August 31, 2021 7:50 am PDT by
With the launch of Apple's iPhone 13 lineup believed to be just a few weeks away, we have compiled all of the coherent rumors from our coverage over the past year to build a full picture of the features and upgrades coming to the company's new smartphones. For clarity, only explicit improvements, upgrades, and new features compared to the iPhone 12 lineup are listed. It is worth noting that...
qualcomm snapdragon x60 5g

iPhone 13 Lineup Expected to Use Qualcomm's Snapdragon X60 Modem With Several 5G Improvements

Wednesday February 24, 2021 8:10 am PST by
Apple's next-generation iPhone 13 lineup will use Qualcomm's Snapdragon X60 5G modem, with Samsung to handle manufacturing of the chip, according to DigiTimes. Built on a 5nm process, the X60 packs higher power efficiency into a smaller footprint compared to the 7nm-based Snapdragon X55 modem used in iPhone 12 models, which could contribute to longer battery life. With the X60 modem, iPhone...