Apple Works to Reduce Dependence on Samsung

Apple Works to Reduce Dependence on Samsung


(Image Source: Cult of Mac)  BY A.J. Feather Apple is trying to reduce its dependence on
Samsung by finding a new partner to start making some of its smartphone and tablet chips.
The Wall Street Journal broke the story Friday writing Apple signed a deal with Taiwan Semiconductor
Manufacturing Co. But it’s not easy to find a Samsung replacement. The Journal reports,
“The process had been beset by glitches preventing the chips from meeting Apple’s speed and power
standards.” Apple’s reason for concern is evident — Samsung
is Apple’s biggest competitor in the Smartphone market. As of the first quarter, Samsung holds
30.8 percent and Apple had 18.2 percent of the smartphone market respectively. Their
next-closest competitor is LG with just 4.8 percent market share. (via Engadget)
And although Apple was uncomfortable with its dependence on Samsung, Samsung certainly
doesn’t want to lose the business. MacRumors reports “… an estimated $10 billion of Samsung’s
reported $59 billion in component sales …” comes from Apple.
In addition to the companies’ rivalry in the mobile device market, they have been engaged
in a war over mobile device design patents for several years now.
Just this month, that battle resulted in the United States International Trade Commission
issuing a ban on several older Apple mobile devices, including third and fourth generation
iPhones. (via The New York Times) And last summer, Samsung was required to pay
apple more than a billion dollars in damages to Apple over patents.  Though a federal
judge ruled against the permanent ban Apple was seeking on eight Samsung smartphones last
December. (via Bloomberg) The Wall Street Journal reports the new chips
from Taiwan Semiconductor Manufacturing Co. could potentially be smaller and more efficient
thanks to advanced “20-nanometer” technology. The chips are set to enter mass production
in early 2014.

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