Friday, September 7, 2012

Apple Inc. (NASDAQ:AAPL) Drops Samsung from its List of Suppliers for Memory Chips

A fallout of the patents dispute between Apple Inc.(NASDAQ:AAPL) and Samsung is already making itself felt.

The Cupertino company has slashed its orders for memory chips from Korean company Samsung for its new iPhone, Reuters reported on Thursday quoting a source.

Samsung has been a long-time supplier to Apple, for microprocessors, flat screens and memory chips for many of Apple's devices such as iPhones, iPads and iPods.

Apple has been cutting its orders from Samsung as it tries to diversify its lines of supply for memory chips, although the South Korean firm remains on the list of initial suppliers for the new iPhone, the source told Reuters.

On Friday, the Korea Economic Daily said that Apple had dropped Samsung from its list of memory chip suppliers for the first batch new iPhones.

Apple is widely expected to release its new iPhone 5 on September 12, at an event that has been intensely speculated and written about.

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Samsung has been replaced by Toshiba Corp, Elpida Memory and Korea's SK Hyndix, who will supply dynamic random access memory chips and NAND memory chips.

"Samsung is still in the list of initial memory chip suppliers (for new iPhones). But Apple orders have been trending down and Samsung is making up for the reduced order from others, notably Samsung's handset business," the Reuters source said.

The source however said that there was no truth to the speculation that Apple's move to cut out Samsung from its suppliers' list had anything to do with the on-going patents dispute between the two companies and consequent sourcing of relations between them.

Apple's iPhones are widely seen to be facing a supply crunch due to a delay in shipments of LCD screens by Sharp.

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