Apple just delivered another blow to Samsung

“During the past several years, Apple has relied on rival Samsung for everything from memory chips to displays for its devices,” Chris Neiger writes for The Motley Fool. “But, as the competition between the two has heated up, Apple has been slowly moving away from Samsung as a supplier. ”

“According to The Wall Street Journal, Apple made yet another move this week as it received the first shipment of microprocessors from Taiwan Semiconductor,” Neiger writes. “This not only moves some microprocessor business away from Samsung, but puts Apple in a better position to negotiate prices for its processor manufacturing in the future. Meanwhile, Apple’s business could account for as much as 10% of Taiwan Semiconductor’s revenue this year — a percentage that could increase as Apple bumps up orders.”

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    1. I am not sure how important that is, in the grand scheme of things. It is not clear that Apple’s ARM-based A-cpu architectures are of any benefit to Samsung for Android or Tizen products.

      Depriving Samsung of revenue and releasing Apple from dependence on Samsung as a key supplier are the key near-term benefits.

      1. It’s important. Otherwise Samsung’s Exynos processors will become clones of Apple’s A-series. True, Samsung doesn’t use those in the US, but they do in other parts of the world.

        1. Samsung is still a supplier… FOR OLDER STUFF… amazing how the iphone 4s is still on the market… but we know its end is near.

          Apple and Intel would have been a nice match, but Intel has too much pride be FABBING someone else’s Architecture/Design

    2. Just imagine a world where samsung created phones of their own design without stealing Apple’s. The only difference would be cheaply built devices of even lesser quality or direction.:)

  1. Instead of Apple “slowly moving away from Samsung” as a supplier, how about QUICKLY moving away? How much of Apple’s IP has to be stolen before Cook gets the message and cuts off the gravy train?

    1. When other companies can produce what Apple needs in terms of quantity, price, and QUALITY, that’s when Apple will sever ties from Samsung.

      Ever notice that every time a story about Apple not using Samsung as a component supplier arises, it’s followed a couple months later with “Apple taps Samsung to supply ___________ due to production issues with Company X”? Yeah.

      I want Apple to be done with Samsung, too. Completely done. But darn it, why can’t TSMC and Sharp and everyone else in the supply chain outdo those crooks so Apple CAN sever ties with them?

      1. “But darn it, why can’t TSMC and Sharp and everyone else in the supply chain outdo those crooks so Apple CAN sever ties with them?”

        For one very simple reason: Samsung copies the best and mass produces it.

        As has been very widely reported, Samsung copies others (not just Apple) and when sued, delays and delays and delays then finally settles. Prior to being sued and during the long delays Samsung make a LOT of money. It rarely uses that money to develop truly innovative products. It uses that money to perfect the mass production of copied items. Samsung does this with an extremely wide variety of technologies. Ripping off Apple’s intellectual property is only a tiny fraction of Samsung’s long history in this regard.

        Samsung takes technology that is not legally available to TSMC, Sharp and others (or even to Samsung themselves) and just implements it in mass production ways. Thus they can get reasonable quality and quantities on their piece parts utilizing this stolen technology. Consequently, it’s difficult for Apple to go to others to get the same quantities and quality. IF others had a similar lack of ethics then they could do the same thing as Samsung and Apple would be able to pick and choose from among a vast array of vendors.

        Often, in order to move away from Samsung, Apple has to pay companies to come up to the necessary quality and quantity levels so that Apple *can* dump Samsung. On a purely financial basis, this is a dumb thing for Apple to do. On an ethical and very long term business basis, it most definitely is the right thing to do.

        1. I believe it was Steve Jobs himself who flew the pirate flag over the Mac development building. He himself was THE pirate by abandoning the LISA project and moving over to the far more kewl Macintosh project. He was royally razzed for his bad attitude in this regard.

        2. Ooo naughty me. Thanks to your link, I notice:

          Steve Capps, the heroic programmer who had switched over from the Lisa team just in time for the January retreat, had a flash of inspiration: if the Mac team was a band of pirates, the building should fly a pirate flag.

          Yo ho. Yo ho.

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