Apple Cuts Samsung As Component Supplier Over Patent Dispute

Apple has done it. It just killed of Samsung as a component supplier for its mobile devices. Tekedia has expected this to happen. And this is the cost Samsung has to pay by taking the route they took. It is going to be increasibly difficult for these companies to partner when they are enemies in the court. Tekedia made that observation many days that Apple will likely drop Samsung as this battle in the court goes on.


Lawyers smile, as usual, and by the end of the season, they will settle. Last Tekedia checked, they are selling iPad and Galaxy tab. It will not stop. It is just that lawyers are having good times.


What is next for Apple now? Most likely they will use TSMC for the production of the A6 processor which powers the iPad. This next generation ARM based design is expected to debut in 2012 and powers the next generation of the iPads. What Apple needs is a foundry since it makes and designs its processors. That makes life easier for them to shop around.


For Samsung? They just lost the #1 semiconductor purchaser in 2010. Apple bought more components than any other company in 2010. That could be a very huge revenue lost for Samsung and would even top what they might have lost if they have decided to settle with Apple.  Shipping to Apple brings prestige as you can market your products knowing that more companies will come will come if you provided components in the iPad and iPhone. Besides helping in the production of some components, Samsung supplied some parts. Apple shops for memory and does not make their own. They only make the ARM processors in-house and other components like gyroscopes, microphone,  and accelerometers are bought from vendors.



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