Apple Won’t Source Samsung for Mobile Processors Moving Forward

A standing arrangement that saw Samsung as the manufacturer of processor components for Apple’s mobile devices will reportedly end next year as the Cupertino-based technology giant hands the reigns over to Taiwan Seminconductor Manufacturing Company. Samsung was tapped to supply Apple with the A4 and A5 chips used in recent iPhone and iPad devices, but increased competition from the Korean manufacturer’s lineup of Android smartphones and an ongoing legal dispute have no doubt soured relations between the two companies.

Rumors that the two companies would part ways started up earlier this year, though the reveal that the A5 chip found in the iPad 2 would still be Samsung-made proved initial reports false. That was before Apple alleged that Samsung copied the design of their iOS products in the US courts and is doing the same in Korea, showing little hope that business relations might be salvaged.

[via ArsTechnica]

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  • http://twitter.com/TwiTati Tati

    crybabies… I hope those stop using Samsung displays moving forward too… 

    • shingi_70

      To be fair this is going to take a bug chunk out of samsung’s revenue. 

      • Rjayflo

        This will not damage Samsung’s revenue…Samsung is a giant in an electronics, etc.

      • The ATL Guy

        LOL! 
        WOW 
        I hope that a clue cruises by you in your fantasy land. 

      • hijackerjack

        Not really lol. Samsung makes a whole lot more shit that phones lol. Washer/Dryers, TV’s, computers, etc. 

    • Stephen D

      Actually, the iPhone 4, iPad, and iPad 2 use displays from LG.

      • Jon Po

        Who the fuck cares about displays, this thread is about chip-sets. Wrong thread asshole. 

        • FiFi

          haha dang… rip him to shreds just b/c he wants to clarify some misinformation :P

  • Daniel

    And this has what to do with android?

    • Curry

      Don’t like this comment guys =.=” This has to do with the mobile industry, and Samsung who is making some amazing spec’d phones who will be losing some major cash if Apples relations stop completely. This will impact Samsung’s future phones.

      • Chris

        I recall reading Apple’s business is only 4% of Samsung.  That’s not major, more of a smidgen.

        • dawankler

          Uhhhhhhhhh, I’m pretty sure you’d be complaining if you went in to work today and they told you they were cutting your pay by 4% this year.  I bet you’d get even angrier if they told you “Hey, but it’s only 4%, that’s not major”.

          For FY2010 Samsung reported sales of 154.63 trillion Korean won.  That’s about 142 million USD. A 4% loss is about 5.7 million in lost revenue, which is nothing to sneeze at.  More importantly, if analysts were originally projecting a 12% increase in revenue and those numbers fall short 4% now Samsung’s stock prices will be negatively affected over that, bringing the value of the company down further.

          I’m not saying it’s going to do anything even close to putting Samsung out of business, but a 4% loss of revenue is not something to sneeze at.

      • chris125

        yeah but with as many products as samsung makes im sure they arent that worried about this loss.

      • Me

        So they will end up making better phones since they need people to buy their devices?  I’m all for that!

      • Stephen D

        Apple’s business is only 1-3% of Samsung’s revenue. Apple taking their business elsewhere won’t do a thing to Samsung. Apple would be taking quite the risk too. Samsung is one of the only manufacturers in the world that can keep up with the demand for Apple’s products on top of the demand for their own. 

      • http://www.facebook.com/profile.php?id=1787373408 Austin Nichols

        samsung employes more workers than ford they will be fine apple will be the one with a hard time

    • http://twitter.com/the_tides Chris

      Nothing. It’s easy page-views from the inevitable HURRRRR I HATE APPLE comments.

    • jroc74

      edit………

    • DYNK

      Everything, Samsung is Android’s best company now. Why should it not having anything to do with Android.
      Samsungs pros like the Super AMOLED+ screens and hardware are directly representing Android as a whole against Apple

  • Abe

    not really, samsung’s cell phoni division brings in a fraction of its overall earnings. I hope other manufacturers are keeping an eye on this, what will apple do if Samsung, Sony, Toshiba, Intel, AMD, Nvidia, and TI refuse to provide parts for their lineup of iCrap?

    • phoenix

      i WISH that would happen, but unfortunately, it’s all about money and someone will always take the offer.

  • Zeorai

    The odd thing about this is that since they’ve lost the revenue from chip production for Apple they have to make it up in other ways.  The mostly likely avenue being production of chips for other companies.  This could mean Sammy making Exynos chips available to other companies.  At a minimum they now have the fab time to produce those chips.  Personally, I’d like to see how an Exynos powered tablet compares to a Tegra2. 

    • Stephen D

      In phones, the Exynos blows the Tegra 2 away. It’s easily the best CPU yet, though the A5′s GPU is better. It would be the same in a tablet.

    • http://www.facebook.com/profile.php?id=1787373408 Austin Nichols

      hopefully they start selling super amoleds to other companis with the new factory they built

  • Josh W

    Samsung is a much larger company all together apple may have i large part of the mobile industry market but thats it their people are still buying windows pcs more than Macs and theyve lost the lead as the worldwide OS leader to android they have no choice but to be more competitive and make this move. Samsung makes a lot more products than just smartphones and tablets. i mean theyre in the washer dryer market even it probably one of the largest accounts theyll ever lose but theyre not gonna go bankrupt over it thats for sure

  • Butthead007

    /me bangs head on table.

    Why are people so caught up in brand loyalties and they do not understand how businesses function?

    Wikipedia and unfettered access to information–not yet confirmed- by complete dolts has made the Internet a painful place to be. Throw in a grain of salt from a moron who think’s he’s a genius and the self entitlement attitude that is so pervasive today I just want to cancel my Internet and go back to reading books. Then again, I should probably just stop reading blogs–who do nothing more than report other people’s news–and lead a happier life.

    I’d also ask the common gene pool to develop more than 3 brain cells, but I have realistic expectations.

    • Jon Po

      You stupid asshole, simply throw your piece of shit computer out the window and BANG your done. I guess you read blogs on your spare time between jerking off and sodomizing yourself huh. It’s people like you that make me happy that I own a gun.

  • androidscales

    apple can suck my android  dick

    • John

      AHAHAHA!! Best comment here and pretty much sums up the way I feel about crApple.

  • https://sites.google.com/site/barry99705/ barry99705

    I thought Apple bought out some chip company so they didn’t have to use a third party to make their chips?

    • dawankler

      You might be thinking of the recent purchase of 200+ patents from Freescale Semiconductor, or maybe even confusing Texas Instrument’s recent announcement to purchase National Semiconductor.

      Apple has bought a couple of fabless semiconductor companies and they’ve rolled some of their tech into Apple products, but it still leaves them without an actual fabrication shop to produce the chips in house at scale. 

  • Guerrilla Bob

    Considering that EVERY major electronics manufacturer in the world has started their own production of Android devices, I think Apple just dug up an enormous hole for themselves.

  • Jon Po

    I really doubt Apple will find a better chip-set elsewhere. Do you think Apple is going to throw a shitty Snapdragon or TI processor in their latest product? I doubt that, If their was a company in Taiwan that made better chip-sets don’t you think HTC would have jumped on that by now? Instead of using those outdated snapdragon processors 

  • Richardyarrell

    Piss on apple and their useless phones and piss on Samsung for their useless updates to old devices. Both companies are USELESS

    • squiddy20

      Well you’d better start drinking gallons of water then! You’ll be pissing on all those phones for a looooong while! Who knows, maybe you’ll hopefully die from the inevitable water poisoning…

      If Apple is so “useless” then why do so many people own and use their products?

      • http://www.facebook.com/profile.php?id=1787373408 Austin Nichols

        because they dont know how to use anything elese and are too dumb to learn it

        ive reccomended family members to get iphones over  wp7 or android a few times mainly because i know that they would struggle to learn the more complex oses. androids srength is going to come from younger people growing accustomed to it like we did with windows. not old people that want to learn the os. 
        some people eithr refuse to or cant posibly understand  technoligy  

        • squiddy20

          For the most part, I’d have to agree with you. iOS is an easy to learn/use OS. From little toddlers to grandparents, all ages can easily understand it. To use the Apple phrase, it generally does “just work”. But given all this, just because it’s dumbed down, doesn’t mean it is, as Richard put it, “useless”. You can do plenty of things on an iPhone. If I’ve read right, a more businesses are transitioning from Blackberries to iPhones. If iPhones are so “useless” then why are businesses adopting them for their communication tech? (rhetorical question) The statement that “iPhones are useless” has not one bit of truth in it. That’s all I’m saying. Just trying to prove a point.

  • feztheforeigner

    Does apple even know how to make a processor by themselves? They’re just shooting themselves in their hubris foot.