Apple Will Give Samsung A Big Win?

(Technewonline) According to the Korea Times said, starting in 2016 Apple will spend the bulk manufacture chips for the iPhone and iPad for Samsung. Does Apple is bringing a big win for Samsung?


According to the Korea Times said, starting in 2016 Samsung will manufacture the majority of chips for the iPhone and iPad. This will be a big win for Samsung.

This year, Apple changed the company producing most chips from Samsung for the iPhone and iPad to another company as Taiwan Semiconductor Manufacturing Co. (TSMC), The Wall Street Journal reported. Samsung has been making a small percentage of the number of chips for Apple, but it's still a big loss of business.

This is also part of the reason why this year's profits Samsung has crashed like a stone. In Q3 2014, Samsung's profits fell 50%. Samsung blame the sales of smartphones but the decline in new business phone chip is the main reason leading to this.

But under the new agreement, Samsung will produce 80% of the chips for the iPhone and iPad next year. This agreement brings money's worth "billions" for Samsung, according to the report.


Apple designs its own chips for the iPhone and iPad, but needed a manufacturing partner to build them. Historically, manufacturers were selected as Samsung. However, this year Apple has switched to TSMC. Now it looks like TSMC no longer meet the requirements of Apple, so again Samsung to take this position.

However, although Samsung will be producing most of Apple's chip again, but it still faces a major challenge in its smartphone business. Android smartphone manufacturers such as Lenovo and Xiaomi can produce products with high specifications but only about half the price compared to a Samsung phone.

                              Report of BI Interlligence smartphone market share

According to BI Interlligence, Samsung's smartphone sales continue to decline, while the other competitors on the rise. Xiaomi as an example, the current Xiaomi smartphone vendor is the third largest in the world.

Samsung's biggest task in the coming years is to figure out how to distinguish smartphone and tablet relative to other android devices.

                                                                                                                 Source: Business Insider