Apple said to be reducing iPhone 5 part orders from Samsung

By , Sep 7, 2012

Given the ongoing legal battle between Apple and Samsung, it wouldn’t surprise anyone if Apple started reducing its dependency on Samsung components. The S. Korean company makes a number of parts that go into products like the iPhone and iPad.

Well according to a new report, that’s exactly what is happening. Apple has been seen significantly reducing its next-gen iPhone part orders from Samsung. Oddly enough, however, it’s said that this move has nothing to do with the patent disputes…

Reuters is reporting that Apple has started reducing orders from Samsung for internal iPhone 5 parts in an effort to diversify its supply chain. Its source denies that the move was prompted by a souring relationship between the two companies.

Samsung makes a wide range of components for Apple’s products, including DRAM and NAND memory chips, and display panels. But for the iPhone 5, Apple has reportedly dropped Samsung’s name from the supplier list for these parts and has tapped LG Display, Toshiba Corp., Elpida Memory and SK Hynix to pick up the slack.

Interestingly, DigiTimes predicted this back in May, which caused Samsung to lose more than $10 billion in market value. Samsung makes a lot of money selling parts to Apple, and the thought of losing that obviously makes investors very nervous.

It’s possible that the report is right, though, that this doesn’t have anything to do with the beef between the two tech giants. This could just be Apple widening its supply chain to increase iPhone 5 production, or to help it avoid hiccups in part supplies.

That being said, we have to admit that this sounds a little like what Apple is doing to Google, forcing it out of iOS over its issues with Android. First Google Maps, and now YouTube. It’ll be interesting to see how this thing with Samsung plays out.

Could Apple survive without Samsung? Or, more importantly, could Samsung survive without Apple?

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  • http://twitter.com/walcy_carroll walcy.carroll

    Yeah I can see Samsung surviving, will it hurt sales yep, but as I walk in several stores, from walmart, to tmobile, to sprint and others all I see is android everywhere, plus samsung is well diversified that they will keep moving on.
    Being that I am an apple guy, well actually i use all products from linux,windows, apple, but love my iphone. I admit I have tested several android tablets and phones a few years back and nothing really impressed me. Recently however there have been some nice tablets and phones out there, but nothing to make me switch, plus you got the whole ecosystem that works for me rather well. I must admit the 2tone design in white i am not a huge fan of, but the black really does not look all that bad. I am hoping for more with the next iphone, but being realistic it will not have everything on my checklist, but I think it will come close.

    • iDevizes

      I agree with you there. The Samsungs are getting better (Galaxy S3) and better and come close to an Apple iPhone. But an orher reason to not buy an Android is because of the paid iOS apps, switching is expensive business if you want the same apps on your Android, I guess you mean that with ecosystem.

  • CollegiateLad

    Samsung will be just fine. And it’s smart on Apple’s part to diversify. Given the bad blood between the two, putting all your eggs in one basket just seems like a receipt for disaster. I personally believe in self-sufficiency – and I know Apple does as well as evidenced by their control-all-aspects approach. I’d like to see the day were they produce all their own parts alleviating supplier dependency altogether.

    • Liu Zhenyu

      Great comment.