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Is Apple dropping Samsung as a supplier?

Don't bite the hand that feeds you, that's how the saying goes. Well Samsung has been ignoring this as much as is possible -- with its numerous lawsuits against Apple (with plenty coming back the other way, we might add), it's chomped its way practically up to the Cupertino company's elbow.

But now Apple's about to hit Samsung in the wallet. Apple is to reduce the amount of memory it buys from the Korean company for use in its iPad and iPhone, instead choosing to buy from Toshiba and others. Nothing personal, just business.

DigiTimes reports Apple is diversifying its supplier base. So Apple will buy flash memory not only from Samsung -- a trusted supplier for years -- but Toshiba as well. It'll be getting its RAM from Elpida, according to the site's sources.

Hardly surprising, considering the whirlwind of legal writs engulfing the two in recent months. Apple started suing Samsung for "slavishly copying" the iPhone and iPad with its mobile and tablet devices, then it went one better and had the Samsung Galaxy Tab 7.7 yanked from the IFA show in February and banned in some countries. Not content with Europe, Apple decided to sue Samsung in Japan, while Samsung countered by accusing Apple of infringing on its patents in Australia.

To top it all, rumours abound that Samsung might try to have the iPhone 5 banned on launch day. So there really is no love lost between these two.

These legal wrangles have been noted as key to encouraging Apple to diversify its supplier base. Samsung was the largest supplier of components for Apple products, though apparently Apple will be going to Taiwan Semiconductor Manufacturing Company for its processors.

What do you think? Can relations between these two ever be repaired? Let us know in the comments section below or on our Facebook page.

Comments 7

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anonymous's avatar

anonymous 22 September, 2011 20:38

Apple is a greedy shiny toy company that sues anyone who gets in their way or is a threat. I think Apple has shown the world what a rotten apple it is.

Bltch Bearne's avatar

Bltch Bearne 23 September, 2011 02:14

LOL Well worth the story for the pun

anonymous's avatar

anonymous 23 September, 2011 08:03

Apple lawsuits are ending up making samsung more and more famous among the masses.. samsung may be right in doin it. even if its supplies to apple are down, wont matter if samsung can chop apple's share for itself.. more profitable you see.. dats what samsung is doing.. great strategy. its making apple bite itself. almost every site except apple exclusives, u can see a clear demand for rumored nexus prime,even gs2 over iphone 5.. well done apple for screwing everything!

anonymous's avatar

anonymous 23 September, 2011 08:08

To add.. apple is loosing its credibility as a brand.. as you can realise from the very first comment.. dats bound to happen if patent is based on the end product instead of the method of attaining it..

anonymous's avatar

anonymous 23 September, 2011 08:20

I agree with above comment fully.. apple was even criticized by media after samsung tab got banned.. they actually criticized and questioned the credibility of lawsuit even commentin apple should never have been given such patents for noone can patent the end result.. eg. pinch n zoom.. u cant patent pinch and zoom feature,just your method of attaining it.other companies are free to use some other method to attain the same result.. otherwise we would have got different tyre shapes too.. lol

anonymous's avatar

anonymous 23 September, 2011 11:43

Clearly an article written on the side of Apple. If I remember correctly, it was Apple who first filed a lawsuit against Samsung. Apples lawsuits will end up being bad for development and innovation if they are to be successful in the courts. The patents they have should never have been granted in the first place. Their eventual move to using different suppliers for different components will come back to haunt them when one company is unable to supply the needed component at a given time - which will cause delays in manufacturing and releasing of products.

WinTard's avatar

WinTard 24 September, 2011 18:42

Apple needs Samsung more than Samsung needs Apple.

Apple only accounts for less than 4% of Samsung's yearly revenues.

A disruption of the supply chain for Apple would have dire consequences, whereas Samsung business is well diversified.

The only manufacturer in the world of Apple A4 and A5 chips is Samsung. Moving foundry is possible but will incur delays and debugging in the order of 9 months at least. Plus the yield (reliability) will be questionable until proven.

Now who used the cliche Don't bite the hand that feeds you? Samsung is feeding Apple with essential parts without which there would be no iWhatever. To Samsung 4% is a mere pittance.

Wake up and smell the coffee.

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