Samsung Takes Hit as Apple Partners with TSMC for iPhone, iPad Chips
July 1, 2013 1:11 PM
comment(s) - last by
Samsung will now fill the void by making chips for the likes of Qualcomm and even for its own products
If Apple and Samsung's turbulent relationship was made into a soap opera, this episode would feature continued
separation between the two
and Apple's "other lover."
Apple recently signed a new supply deal with Taiwan Semiconductor Manufacturing Co. (TSMC) for iPhone and iPad chips. These orders from Apple will reportedly account for 8 percent of TSMC's 2014 total revenue if Apple buys 30 percent of its chips there, according to Credit Suisse analysts.
If Apple bumps this up to 60 percent in 2015, it will make up 15 percent of TSMC's revenue for that year.
Apple has been distancing itself from Samsung due to competition between Apple's iPhone and Samsung's Android-powered smartphones (such as the Galaxy line). The two have also had an ugly patent war that has soured relations over the years.
Apple's new deal with TSMC isn't great news for Samsung, but it will likely fill the void by making chips for the likes of Qualcomm and even for its own products.
[Image Source: Nerd Array]
At the Consumer Electronics Show (CES) back in January, Samsung's President of LSI business Stephen Woo said that it's crucial for the South Korean electronics maker to focus on
alternatives to Apple
when it comes to the chip sector. In fact, Samsung has been supplying Exynos quad-core chips to Chinese smartphone company Meizu and also to Lenovo's K860 LePhone.
According to Goldman Sachs, Apple will purchase about $8.8 billion USD worth of chips from Samsung this year, which is about 80 percent of Apple's allowance for processors, memory chips and screens. But Apple is expected to move 30 percent of its business away from Samsung next year and about 80 percent by 2017.
It's unlikely that Apple will give all of its chips business to TSMC, since it doesn't want to put all of its eggs in one basket. TSMC will begin supplying the processors in early 2014.
Chips aren't the only hardware Apple and Samsung are phasing out in their relationship. Samsung Display, which has provided Apple with
liquid crystal display (LCD) panels
for its iPhones and iPads over the years, officially severed its contract with the iDevice maker last fall. Samsung cited cost as the main issue, since Apple has started using Samsung competitors with better prices for displays. Hence, Apple was expecting bigger discounts from Samsung.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
RE: Samsung displays
7/2/2013 3:04:26 PM
Heat hasn't been an issue for years. The first time I saw the 2011 Panasonic plasmas at CES I was amazed. Not only did it have IQ comparable to the Pioneer Elites from a few years before, they put out NO HEAT.
As in, I put my hand in front of and behind a plasma that had been running all day and I couldn't feel a thing. It was a far cry from my own plasma which does put out heat. So that issue with plasmas, gone, all while they maintain their display advantages against LCD.
Nothing else Reclaimer said in regard to IQ was called correctly either, burn-in hasn't been an issue for almost ten years. Temporary image retention is a possibility, but that isn't a real issue, and I've had more issues with that on LCDs than my own plasma.
Evaluating TVs set on torch mode in a showroom with warehouse lighting is the absolute
place to evaluate displays.
I'm not being malicious in any way when I call you ignorant here. That isn't a negative about your character or you as a person, you just literally have no idea what you're talking about here.
RE: Samsung displays
7/2/2013 3:21:25 PM
"Heat hasn't been an issue for years.The first time I saw the 2011 Panasonic plasmas at CES I was amazed. Not only did it have IQ comparable to the Pioneer Elites from a few years before, they put out NO HEAT. "
Good to hear... I am set for the next few years. I wont be buying again until 4K's are standardized and much cheaper. I will certainly fairly evaluate all tech on the market at that time.
RE: Samsung displays
7/2/2013 3:39:08 PM
I'm still hoping that OLED comes down enough to be viable on desktops. I love that they deliver such accurate color and deep black, and that they're so small. My biggest issue with plasma is that it is completely unsuitable for desktop use since the smallest ones are still massive. OLED is small and looks amazing.
I just ain't dropping 25k on one. ;) They are fun to use for work though.
"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot
Samsung Shys Away From Apple, Plans To Sell Chips to Chinese Smartphone Makers Instead
January 10, 2013, 11:14 AM
Samsung Display to Apple: I Want a Divorce
October 22, 2012, 1:53 PM
Quick Note: QNAP Announces $129 QGenie 7-in-1 NAS for Mobile Users
July 14, 2014, 9:32 AM
Apple Launches 21.5” iMac with 1.4GHz Core i5 Processor Priced at $1,099
June 18, 2014, 8:07 AM
Lowe's "Holoroom" Brings Holodeck, Home Improvement Dreams Closer to Reality
June 13, 2014, 9:06 AM
Intel to Broaden Market for Fanless Tablets, Ultrabooks with 14nm Intel Core M
June 3, 2014, 10:42 AM
ZOTAC Announces Four New Silent ZBOX Mini-PCs
June 2, 2014, 9:21 AM
ZOTAC Announces Funky ZBOX Sphere OI520 Series
May 22, 2014, 8:20 PM
Most Popular Articles
Microsoft Kills Entertainment Unit, May Shelve Flagship Lumia "McLaren"
July 18, 2014, 7:40 PM
JJ Abrams Unveils X-Wing Starfighter for New "Star Wars" Movie
July 21, 2014, 12:24 PM
Ford Details ’15 F-150’s 325hp, 2.7L EcoBoost V6; Demonstrates 732-lb Weight Loss
July 22, 2014, 6:55 PM
Comcast Memo: Harassing Customers During Retention Calls Actually IS Our Policy
July 22, 2014, 5:19 PM
Motorola Moto G Successor Reportedly Uncovered, Moto X Discounted by up to $75
July 21, 2014, 1:11 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information