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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. 

Sources: The Wall Street Journal, Market Watch

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RE: Samsung displays
By TakinYourPoints on 7/2/2013 3:33:46 PM , Rating: 2
Tech is specs and price. Like I said, people aren't going into stores comparing displays and choosing the more expensive one with the lower IQ.

People buy trash consumer electronics all the time. Marketing is what matters more. People cannot properly compare displays either when Best Buy and Fry's have the worst lighting conditions and TVs set on torch mode. They give nothing for people to make an informed decision with.

Specs don't factor in either, all of the "features" added to LCDs are band-aids made to try and come up to plasma level. They don't go all the way while they add cost and input lag. There is no better tech or value with "better specs". Again, all marketing.

Furhtermore, most people don't know how to properly set up their monitors to begin with. The comparison between tech and Beiber/Kesha actually works. The number of people who know how to make their TV look good and the number of people who know good music is probably pretty similar. ;)

BB or any other retailer doesn't have any reason to push one or the other.

Sure they do. As I said, LCDs carry higher profit margins and cost less to ship because they weigh less, so retailers have huge incentive from manufacturers to push LCDs even over their own plasmas.

"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)

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