Sources in the know claim Apple is looking to break ties with Samsung as the iPhone maker looks elsewhere for device components. Samsung has long been one of Apple’s main suppliers — memory chips, processor, DRAM and NAND chips — but the Cupertino company is allegedly looking to diversify its portfolio as a business strategy. I.e. not because of the ongoing legal battles between the two companies.
Apple product launches always result in choked up supply as frenzied demand sweeps over consumers. The company’s decision to reach out to alternate suppliers allows it to (hopefully) avoid such crunches, and eventually eliminate relying so heavily on one entity. Apple has reportedly dropped Samsung for the first batch of iPhone 5 memory chips, instead opting for companies such as Toshiba, Elpida Memory and SK Hynix.
But don’t feel bad for Samsung. Just because it’s losing business doesn’t mean the company should start panicking. “Samsung is making up for the reduced order from others, notably Samsung’s [own] handset business,” Reuters said. I guess 20 million Galaxy S III sales will do that for a company.