Samsung and Apple Now Closer Than Ever; Samsung to Provide 80% of Apple's Processors by 2016

[dgstorm]

Despite the "thermonuclear war" that was waged in the courts between Apple and Samsung, the two companies are apparently now joined at the hip again. For years we heard reports of how Apple was trying to distance itself from relying on Samsung in an attempt to engage other suppliers for parts of iPads and iPhones. It seems those days are now over.

The two tech titans have reportedly inked a deal in which Samsung will supply up to 80% of the processors for Apple's iPads and iPhones by the year 2016. This deal will be worth "billions of dollars" to Samsung, although neither company has confirmed this report which comes from The Korea Times.

Here's a quote with more of the details,

"Apple has designated Samsung as the primary supplier of its next A-series chips powering iOS devices from 2016 as the alliance with GlobalFoundries (GF) enabled Samsung to cut off capacity risk," a source familiar with the deal said.

The value of the deal is said to be worth "billions of dollars," according to the sources.

Production of the APs will start early next year at Samsung's local factory in Giheung, Gyeonggi Province, and the volume will grow as Samsung plans to use its facilities in Austin, Texas and the GF-owned factory in New York for increased output, another source said.

The resumption of business with Apple comes a month after the two companies agreed to drop all patent litigation outside the United States.

The mobile world definitely seems to morph and evolve in unexpected ways...

 

[Jeffrey]

That's interesting. I thought Apple bought that Israeli chip manufacturer to break away from Sammy.

 

[Ollie]

TSMC is supposed to be mass producing 16nm chips shortly after Samsung does so I think the real money will go to whichever one mass produces 10nm first.

TSMC has had the majority of this year's production runs for Apple. If they can pick up the pace for 16nm and 10nm Samsung's 80% will fall quickly.

 

[popcenator]

Is it really that surprising after hearing how Samsung has fallen off, or not done as well as they have in the recent past. This way they can still turn a good profit despite sales not doing as well as they have been.

on the move..

 

[cr6]

Keep your friends close and your enemies closer.

S5 tap'n

 

[Ollie]

Is it really that surprising after hearing how Samsung has fallen off, or not done as well as they have in the recent past. This way they can still turn a good profit despite sales not doing as well as they have been.

on the move..

That is just one division of Samsung. They still grossed billions. In that division alone.

There is no way they will ever maintain that profit margin simply due to their price points of their flagships. That is the same reason Apple will always be insignificant on a global scale.

The majority of man kind cannot ever hope to afford even a midrange device due to costs. Where I work right now my phone costs three months of their salary. Nokia candy bar and Samsung's lowest end phones rule the roost.

Samsung has to skip 16nm and get to 14nm faster than TSMC. With the backing of the Global Foundry Samsung will corner the 14nm and the 10nm market.

 

[dgstorm]

TSMC is supposed to be mass producing 16nm chips shortly after Samsung does so I think the real money will go to whichever one mass produces 10nm first.

TSMC has had the majority of this year's production runs for Apple. If they can pick up the pace for 16nm and 10nm Samsung's 80% will fall quickly.

Actually, you hit the nail on the head indirectly as to why this is happening. The report indicates that Samsung was able to move to the smaller nm process sooner and in greater quantities, which is why TSMC is getting kicked to second place.

 

[RANDI.ENGLEZU]

i don't believe something like that

 

[TatDroid]

It's funny, Samsung grows closer to Apple (chip supplier) and begins to turn away from Google (new budget $100 Tizen phone)

Sent from my Droid Turbo

 

[Ollie]

Samsung has to figure out how to make money on their phones besides the hardware. Tizen is what they hope will usher that in.

Tizen isn't just about phones though. It is planned to be in everything from cars to washing machines.

 

[TatDroid]

Now they just have to figure out how to get app developers to develop for yet another platform.

Sent from my Droid Turbo