Apple Inc. Just Delivered Another Blow to Samsung

During the past several years, Apple (NASDAQ: AAPL  ) has relied on rival Samsung (NASDAQOTH: SSNLF  ) for everything from memory chips to displays for its devices. But, as the competition between the two has heated up, Apple has been slowly moving away from Samsung as a supplier. 

According to The Wall Street Journal, Apple made yet another move this week as it received the first shipment of microprocessors from Taiwan Semiconductor (NYSE: TSM  ) . Some analysts were skeptical that the company could deliver the high-end chips Apple orders, but this latest news proves otherwise. 

This not only moves some microprocessor business away from Samsung, but puts Apple in a better position to negotiate prices for its processor manufacturing in the future. Meanwhile, Apple's business could account for as much as 10% of Taiwan Semiconductor's revenue this year -- a percentage that could increase as Apple bumps up orders.

In this video, tech analyst Chris Neiger talks about the benefits for both Apple and Taiwan Semiconductor as the two move forward. 

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (3) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 15, 2014, at 9:37 AM, Articul8 wrote:

    Samsung just won an order worth billions to supply BMW with SDI batteries for electric vehicles. Losing some silicon fabrication is almost inconsequential to a company that is so diversified.

  • Report this Comment On July 15, 2014, at 10:24 AM, twolf2919 wrote:

    This is hardly news - the time to report on this was a year ago or earlier (which many folks did) when Apple made the decision to give TSMC some of its A8 production business.

    In other words, the "blow" you said Apple just delivered to Samsung was delivered over a year ago.

    As an aside: I believe Samsung still got some of the A8 production contract (and is likely also the primary producer of the A9 when it comes out next year) - so this isn't as much of a "blow" as you make it out to be.

  • Report this Comment On July 15, 2014, at 1:45 PM, deasystems wrote:

    @Articul8: "Some silicon fabrication?" Good, one, Articul8. At one point Apple's business was worth well over $7 billion per year in revenue to Samsung. Eventually, Samsung will lose it all thanks to its relentless copycatting.

    The SDI contract you referred to is a couple of billion over multiple years. That's the one that is "inconsequential"…

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3026560, ~/Articles/ArticleHandler.aspx, 8/22/2014 5:37:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement