Apple Predicted to Expand Lead in Global Semiconductor Purchases in 2012

Research firm IHS iSuppli today released the results of a new study tracking global semiconductor sales in 2012, predicting that Apple will expand its lead on the strength of 15% growth in the face of a stagnant market. Apple first topped the list in 2010 after quickly rising from third place in 2009 and sixth place in 2008.

Apple is maintaining its lead in semiconductor purchasing because of continuing strong demand for its products, combined with the company’s capability to maintain beneficial relationships with more than 150 suppliers that provide components or offer manufacturing and assembly services.

But aside from maintaining its global dominance in chip purchasing, Apple is also outgrowing the other OEMs and making gains in the various regions of the world. For Apple, this translates into competitive advantages when it comes to manufacturing electronic products.


The report notes that Apple's increasingly dominant market position, which is estimated to see nearly double the revenue of second-place Samsung this year, gives Apple significant market advantages in terms of controlling pricing, availability, and product roadmaps.

Apple is predicted to continue expanding its lead in 2013, with IHS iSuppli's estimates pegging Apple at 12.3% growth next year, the highest of any top-ten global customer.

Top Rated Comments

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108 months ago
Apple is not a low ball customer. They demand high quality and delivery performance and they are willing to pay for it. This is a good thing for everyone - supplier and consumer.
Score: 4 Votes (Like | Disagree)
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108 months ago

Given that Apple is by far larger and by far growing faster by this measure is interesting, but another factor is the average cost per CPU has been dropping as the mix shifts from Intel based Macs to custom silicon in iPhones and iPads. So the unit count is huge as well.

They are #1 and pulling away because they are developing entire new markets, not just fighting over market share scraps. Their efforts to capitalize suppliers gives them an unbeatable competitive advantage on first mover, first access, full order book fulfillment and net cost. That $110B cash asset is being put to great use as collateral for those investments. The cost savings and profit increases add to it. Positive feedback loop.

Rocketman
Score: 4 Votes (Like | Disagree)
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108 months ago

What do they mean Buying, and how are they comparing Samsung to Apple here?

I mean, if Samsung actually makes things for real, whereas Apple buys thing from other companies, like Samsung (who actually create the physical items)

How can that compare?

Like saying Apple Milk and Samsung Milk.

Apple are buying more milk than Samsung, but forgetting that Samsung actually own their own cows and produce milk for themselves, so of course they won't be buying much milk as they produce the stuff in the 1st place.


Samsung to Samsung sales should be included if they've done their research properly. It would be a sale from one Samsung entity to another.
Score: 2 Votes (Like | Disagree)
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108 months ago

Yesssss. High five anyone?


I know this will make my life better. I can't wait to tell everyone I know. They will be so envious of me.
Score: 1 Votes (Like | Disagree)
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108 months ago

And Apple is building factories? That is news to me.

You cannot be communicated with.
Score: 1 Votes (Like | Disagree)
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108 months ago

many more great advancements in the near future

Apple is building infrastructure as fast as governments will let them. HQ, servers, factories, retail stores.

Apple is deploying hardware in a "bleeding edge" fashion on displays, mobile CPU, storage, design and integration, software, software diversity and 3rd party involvement. They are choosing where to push the envelope and not only investing in the R&D and product, but investing in the suppliers themselves to lean forward hard. They are facilitating every network possible since that is not their market segment. They work with carriers to give them more customers than they ever imagined or hoped, and make them so sticky there is no term for it, because it has never happened before.

Loyalty matters in commerce. Shocker! BTW it's called an annuity. c.1671 AD

Rocketman

More memory and mobile GPU for God's sake!
Score: 1 Votes (Like | Disagree)

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