Tuesday, October 16, 2012

Apple Inc. (NASDAQ:AAPL) starts to sever ties with Samsung

The two companies may have been rivals, but they had, at the same time, shared a co-dependant relationship with one another. The only company to give Apple Inc.(NASDAQ:AAPL) a run for its money was also providing chips for the Apple phones. However, the relationship between the two companies can no longer be defined as one with healthy competition. Things have turned sour, and Apple is trying to decrease its dependability on Samsung.
Apple is currently reliant on the mobile processors which Samsung makes for them, but the company is soon to stop doing so. Apple has made it clear that it no longer wants to rely on Samsung’s product. This news came from one of the senior members in Samsung, who also said that that things between the two companies are about to get increasingly cold, and soon. The company official also stated that instead of going through the different chips which some clients like to go through, such as the designing, the architecture and the manufacturing of the chip, or even the designing and the manufacture without the architecture involved, Apple just wants the company to make the chips. They do not want any increased involvement with Samsung if they can help it.
While Apple benefitted from Samsung by getting the A6 processors for their iPhone5, Samsung too, earned a lot through this collaboration. So it was never a one-sided affair. The company gained far more than they had when they were building the custom chips for other customers. Samsung used to be very valuable to Apple precisely because the Korean company was the only manufacturer of semiconductors, which could meet up to Apple’s break-neck speed and demands. They could provide the large number of processors which Apple needed, within short periods of time, without compromising on quality.
Unlike other times, when Apple got its processor made by Samsung this time, they made their own ARMv7 core designs. They stuck to the basics with Samsung. Taiwan Semiconductor Manufacturing Co. is said to be the company which Apple wants to rely on, in the future. 

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