Apple cuts Samsung chip order for new iPhone

By Danny Palmer
07 Sep 2012 View Comments
Apple iPhone fighting Samsung Galaxy SIII

Apple has cut orders of memory chips for its next iPhone from supplier and rival Samsung, according to reports.

Samsung has been the key supplier of parts including flat screens, microprocessors and both DRAM and NAND memory chips for Apple products including the iPhone, iPad and iPod.

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Speaking to Reuters, a confidential source suggests that while Apple is looking to diversity its suppliers, Samsung is still on the list of part providers for what's thought to be the upcoming iPhone 5, although the Korean manufacturer isn't in as key a position as it was before.

However, according to the Korea Economic Daily, Apple has indeed dropped Samsung as a memory chip supplier for its next iPhone. The report suggests Toshiba, Elpida Memory and SK Hynix will be Apple's suppliers of DRAM and NAND chips.

Last month's court case between the two electronics giants saw Samsung being ordered to pay Apple over $1bn in damages for infringing on patents related to the iPhone. However, the Reuters source denied that the reported reduction in orders for memory chips was anything to do with the courtroom battle.

Apple is set to make an announcement about its next iPhone on 12 September. Meanwhile, recent estimates suggest component sales by Samsung – the biggest electronics manufacturer in the world – will reach $13bn in 2013, bringing in $2.2bn in profit. A reduction in chip orders from Apple could put a significant dent in these figures.

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