Analyst: Apple likely shift component orders away from Samsung

“Apple Inc. will likely shift some component orders to Taiwanese suppliers from Samsung Electronics Co., as the two electronics giants are locked in an escalating mobile industry war, Swiss bank Credit Suisse Group AG said Wednesday,” Jeffrey Wu reports for CNA.

“‘Taiwan’s supply chain may benefit from the Apple versus Samsung lawsuit,’ Randy Abrams, Credit Suisse’s head of equities research in Taiwan, told a media briefing on the sidelines of the Credit Suisse Asian Technology Conference in Taipei,” Wu reports. “A lot of Taiwanese suppliers, including foundry, testing and packaging, and printed circuit board companies, are expected to win more orders from Apple, he said.”

Wu reports, “In the foundry sector, for example, Apple may place most processor orders using the advanced 20-nanometer technology to Taiwan Semiconductor Manufacturing Co. rather than Samsung, which is likely to happen in 2014, Abrams added.”

Read more in the full article here.

[Attribution: Patently Apple. Thanks to MacDailyNews reader “Judge Bork” for the heads up.]

12 Comments

  1. If an anaylist says it it must be nonsense. The courts would see it as unfair retaliation. If Smsung makes the best components for the best price, use Samsung. Don’t go cheap and second rate, like Dell.

    1. Unfair retaliation? Why would the courts bother to concern themselves with Apple’s supply chain decisions? Apple can stop buying parts from Samsung at its discretion. Apple can decide to pay more for the same parts from other suppliers just because it doesn’t like Samsung. In my book, that would be a wise strategic decision.

  2. Samsung doesn’t make superior components,it only mass produces components for electronic manufacturer. What samsung can do with underage chinese labour,any other would be component makers could do better in a far more superior ways

    1. Are you aware that Samsung is Korean? How does a Korean company do anything with Chinese labor laws? I don’t like Samsung’s practice of slavishly copying Apple, but I’m not going to deny that they build some good products. If Apple wants to “retaliate” against Samsung, I don’t see why the courts would have anything to say about it. Apple is not required to do business with anybody, and who could blame them for going with a different vendor?

  3. I always prefer samsung monitors but I’ve also liked LG. No court could really prove that Apple was doing this in retaliation.. and if they did argue it.. then Apple could always say it was in fear that Samsung would purposely slow down production of Apple devices in their retaliation.

    1. There is nothing illegal about retaliation anyway. Apple is free to retaliate as long as no contracts are broken. Samsung’s countersuit was retaliation, by their own admission.

  4. AFAIK, there is no law against dropping a supplier, no matter your reason. It makes total sense for Apple to move away from Samsung as a supplier, and I am quite certain that Apple plans to do just that as part of its thermonuclear assault. Why would it do any less? It really goes without saying, and therefore, without any facts to back it up, it is just another silly story about Apple, published to get some hits.

  5. It is natural that over time the enmity between the two companies will cause Apple to replace Samsung as a component supplier — though not at a time that it would disrupt supplies or eat (significantly) into Apple profits.

    This is not good news for Samsung shareholders, since they would no longer benefit from Apple’s success in the marketplace. 

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.