Apple Slashes Memory Chip Orders from Samsung

September 7, 2012, By Sanjeev Ramachandran

Apple and Samsung are synonyms for arch rivals. They fight a heated war in the smartphone and tablet market. They have just fought a tight duel on patent violations recently.

But despite all these fisticuffs, both were good partners when it comes to component supply. Though it may sound ironical, Samsung has been a major supply chain partner for Apple with a major share of e orders from the company for their popular products like iPhone and iPad.

However, now sources close to Apple indicate that the Cupertino company is slashing orders from the South Korean rivals for memory chips needed for their next big thing – iPhone 5.

The device, as per rumors, will be announced on September 12th and is expected to face the biggest order numbers yet.

Samsung has been one of the toppers in the list of suppliers for this device, especially offering microprocessors, flat displays, DRAM and NAND memory chips.

But now, emerging information suggests that the South Korean company may be set aside when Apple places orders for memory chips to mass produce iPhone 5 to meet the excessive orders from customers.

Sources close to Apple, on condition of anonymity, has also disclosed that there are chances that Apple will diversify their sources of memory chips and Samsung may not turn up in the initial list of suppliers.

Though neither Samsung nor Apple was ready to acknowledge the change officially, if it occurs, that will become visible in the market share of Samsung in the coming months.

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