After Samsung’s rampant IP theft, Apple contracts with TSMC to stamp out A-series processors for iPhone, iPad

“Chip giant Taiwan Semiconductor Manufacturing Co. has begun shipping the computing brains used in smartphones and tablets to Apple Inc., highlighting the U.S. company’s continued push to diversify its suppliers,” Lorraine Luk reports for The Wall Street Journal.

“TSMC began shipping its first batch of microprocessors to the Cupertino, Calif., company in the second quarter, people familiar with the matter said, supplanting Samsung Electronics Co., which had a lock on the orders for the chips until last year,” Luk reports. “TSMC and Apple have also agreed to work together on more advanced chips next year, according to a person familiar with the situation. Although Apple contracted with TSMC for the chips last year in a landmark deal, some analysts were skeptical that the Taiwanese chip maker, the world’s biggest contract chip maker by revenue, could deliver the complicated chips.”

“For Samsung, the move is a setback as it had been the exclusive supplier of microprocessors to Apple since the first iPhone was launched in 2007. It comes just as the South Korean company’s chip business is starting to feel the impact from a slowdown in smartphone sales. Samsung said Tuesday that its operating earnings in the latest second quarter likely fell by as much as 26.5% from a year earlier, hit by a glut of unsold smartphones,” Luk reports. “Their relationship began to deteriorate in 2011 when Apple sued Samsung in a U.S. court alleging that Samsung copied the technology giant’s smartphone and tablet designs… Apple no longer buys iPhone screens from Samsung and has reduced iPad-screen purchases, suppliers say. Since 2012, Apple has also shifted some memory-chip orders from Samsung to other Asian chip makers.”

Read more in the full article here.

MacDailyNews Take: The more thermonuclear hits Samsung takes to their bottom line, the better.

Samsung makes and markets cheap, plastic, antiquated 32-bit crap with an off-the-shelf OS that was originally meant to be a BlackBerry knockoff but was hastily rejiggered to resemble Apple’s revolutionary iPhone.

Don’t settle for a POS Suzuki Samurai when you really wanted the One and Only Jeep.

Apple’s products came first, then Samsung’s:

Samsung Galaxy and Galaxy Tab Trade Dress Infringement

Here’s what Google’s Android looked like before and after Apple’s iPhone:

Google Android before and after Apple iPhone

Here’s what cellphones looked like before and after Apple’s iPhone:
cellphones before and after Apple iPhone

28 Comments

    1. I think other Android OEMs are happier… HTC, LG, Sony, Moto

      However, the Chinese Androids are going to clean out Samsung and maybe the rest: Xiomi, Huawei, et al…

  1. the before and after picts never cease to shock me. the impact appl has had on technology. So well, i remember all the iMac commercials from bondi blue to she’s a rainbow flower and beautiful hues of transparent candy maker colors and all the while, microsoft belittling, mocking. I’m sure they still like their mobile device plan, meanwhile, all the new microsofts will have had their day.

  2. “Their relationship began to deteriorate in 2011 when Apple sued Samsung in a U.S. court alleging that Samsung copied the technology giant’s smartphone and tablet designs…”

    I beg to disagree. The Apple-Samsung relationship began to deteriorate much earlier when Samsung released its first iPhone (and, later, iPad) look-alikes running on a rip-off Google Android OS. The lawsuit was just a visible manifestation that Apple had finally decided that it had no other viable choice but to sue.

  3. It takes a long time to switch vendors especially for highly complex items like this.
    To be an Apple new supplier, you have to get the technology right to build the parts AND be able to provide 100M+ units per quarter. That is a big ask and needs time to build infrastructure (both machines and skilled workers).
    Apple are great at this since they bankroll a lot of the investment and so are very good at enabling their suppliers.

    1. “It takes a long time to switch vendors especially for highly complex items like this.” What is great about that is it means that once Apple has switched, they won’t be coming back for a very long time, if ever. Samsung has to be sweating that. There’s little chance they can settle and hope to make up with Apple.

    1. Haha. They won’t though. They have figured out that the cost of the lawyers over the short life of any of their copy products is less than the cost of actually doing the development. That’s the real rub with the legal system never sticking to the big penalty dollar fines. They need to be fined such a big amount that they will never copy again.

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