The Korea Times is reporting that Apple (NASDAQ: AAPL ) has cut Samsung out of producing its next-generation A7 chip. The Mac maker continues to diversify its component supplier base away from Samsung. Apple has already begun moving display sourcing to LG Display (NYSE: LPL ) . The A7 business is reportedly going to Taiwan Semiconductor Manufacturing (NYSE: TSM ) and its 20-nanometer process. The transition could hurt Samsung, since it would be left with excess unused. Samsung has supposedly been trying to grow its business with NVIDIA (NASDAQ: NVDA ) to mitigate the risk of losing some Apple business.
In the video below, Fool contributor Evan Niu, CFA, explains what it means for investors.
There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.