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Sunday May 26th 2013

Apple and Samsung’s Business Relationship Might Come to an End – TSMC May Be Replacing Samsung

We are well aware of the legal wars waged by Apple against Samsung. They are currently fighting a legal battle over patent disputes. Specifically, Apple first accused Samsung of copying its iPhone and iPad design, claiming this clearly be seen in Samsung Android smartphones and tablets. Samsung has submitted a counter charge, claiming that it was Apple who is guilty of trademark infringement. Despite their legal debacles, the two technology giants have still maintained a good business relationship. The Korean technology giant remains the Cupertino firm’s biggest supplier of chips and displays, while Apple remains Samsung’s biggest client. This is why we were led to believe that the two industry leaders would no longer be at loggerheads with each other and opt for an out of court settlement. This relationship could, however, come to an end. There are reports that suggest Apple is opting to acquire the services of TSMC (Taiwan SemiConductor Manufacturing Company) for supplying it with A6 chips. 

Currently, Samsung supplies Apple with the A5 chip, which can be found on the highly popular iPhone 5 and the groundbreaking iPad 2. Losing Apple as a client may be a multi-billion dollar loss, since next generation iPhones and iPads are expected to sell much better than their predecessors. Regardless of the rumor, Apple is still using the Korean manufacturer’s displays and memory on iDevices. Their business relationship may not completely come to an end. However, it is highly possible that Apple is currently looking for alternative manufacturers to replace Samsung.

This change in suppliers will be a major blow to Samsung and, at the same time, a huge gain for TSMC. Although a feasible scenario, take this news with a grain of salt. There is no way to know for sure not unless Apple makes it official or when the next generation iDevices finally ship.

 

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