Rumour: Samsung to supply Apple A6 despite patent war

The public spat between Apple and Samsung continues to rage on, with both sides claiming victories and continuing to fire shots at each other. Despite the war of press releases and patents, a new report suggests Samsung will still go ahead with supplying A6 chips to Apple.

According to the Korea Times, industry insiders claim that despite previous speculation Apple will move away from Samsung to Taiwan Semiconductor Manufacturing (TSMC), the manufacturing processes at TSMC have not stablized enough for Apple to justify taking any risks moving away from an existing supplier that has reliably delivered chips for its mobile devices. As two sources state:

Apple has been in talks with Samsung over shipment of its A6 quad-core mobile processor (AP) chips to be used in the next iPhone. It appears that Apple clearly has concluded that Samsung remains a critical business partner. [...] Samsung Electronics will apply its advanced 28-nanometer processing technology to produce qualified A6 mobile APs. TSMC will provide customized chips with designs from Apple, however, the volume will be very small.

The manufacturing process at TSMC hasn’t been stabilized. Considering Apple’s previous patterns of adopting qualified technologies, Apple isn’t taking risks. Samsung offers better pricing and capacity commitment for the A6 mobile APs.

The quad-core A6 system-on-a-chip (SoC) is expected to power the next iterations of Apple's iPhone and iPad devices. The recently released iPhone 4S and the iPad 2 run on just a dual-core A5 chip.

Samsung officials stress the legal issues remain an entirely separate matter from day-to-day business deals with its partners, with confirmation that Samsung COO Lee Jae-yong will meet with Apple CEO Tim Cook to discuss several pending issues.

In a slightly unrelated footnote, Samsung also confirmed that Lee attended the private memorial service for late Apple co-founder Steve Jobs, following an invitation sent from Cook.

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both still lives without each other, that's it move on, dam....Apple, Samsung bla...bla...bla...bla..., dont get me wrong i owned both of their products but i'm just sick of see this everyday.

hOsTaGeZ said,
both still lives without each other, that's it move on, dam....Apple, Samsung bla...bla...bla...bla..., dont get me wrong i owned both of their products but i'm just sick of see this everyday.

+1
I enjoy all my Apple stuff and I've owned quite some Samsung gear, too already and I honestly think they do an awesome job both.

I really just want this all to end finally, because I just don't like the tension.
Good grief...

Glassed Silver:mac

Just to repeat...

Samsung does make good money from Apple.

However, it is tiny in comparison to the scope of the company. Samsung makes more money off of Printers than they do from Apple, and most readers (and AppleFans) don't even realize Samsung makes printers.

Samsung is the 'fabricator' and produces the AP for Apple, but several companies have the facilities to produce the AP for Apple. So it is simple production for Samsung, which is easy money.

Samsung is behind a lot of technology everyone reading this is benefiting from and directly using. They also make a lot of money off their branded consumer products, like TVs, using their technologies, which they also license out for additional revenue.


PS
Although this article does a good job of not conflating Apple and the A4/A5/A6, it is odd that many tech articles and a lot of 'fans' seem to think Apple designed these SoC/AP processors. Apple just licenses them, and did not invent or create them, which somehow is beyond what other tech writers and 'fans' believe.

(Side Note: Microsoft, which is known for software, has contributed a lot of technology to the development of ARM processors over the years, especially with regard to GPU technology and optimizing the SoC designs. This is the part of Microsoft we don't see, as they 'give' these technologies and ideas away to better the industry.)

I've only recently gotten into Samsung's printers. I could tell you they'd be just fine without Apple just from their monitors and TVs. They truly make the best TVs today, and they've made the best monitors for at least the past 15 years.

thenetavenger said,
Just to repeat...

Samsung does make good money from Apple.

However, it is tiny in comparison to the scope of the company. Samsung makes more money off of Printers than they do from Apple, and most readers (and AppleFans) don't even realize Samsung makes printers.

Samsung is the 'fabricator' and produces the AP for Apple, but several companies have the facilities to produce the AP for Apple. So it is simple production for Samsung, which is easy money.

Samsung is behind a lot of technology everyone reading this is benefiting from and directly using. They also make a lot of money off their branded consumer products, like TVs, using their technologies, which they also license out for additional revenue.


PS
Although this article does a good job of not conflating Apple and the A4/A5/A6, it is odd that many tech articles and a lot of 'fans' seem to think Apple designed these SoC/AP processors. Apple just licenses them, and did not invent or create them, which somehow is beyond what other tech writers and 'fans' believe.

(Side Note: Microsoft, which is known for software, has contributed a lot of technology to the development of ARM processors over the years, especially with regard to GPU technology and optimizing the SoC designs. This is the part of Microsoft we don't see, as they 'give' these technologies and ideas away to better the industry.)

Yes and No

Apple licenses ARM just like Samsung does, but IT DOES design its own specification which Samsung then fabricates.

As another side note, which many seem to forget or ignore, Apple was actually one of the founders of ARM

evo_spook said,

Yes and No

Apple licenses ARM just like Samsung does, but IT DOES design its own specification which Samsung then fabricates.

As another side note, which many seem to forget or ignore, Apple was actually one of the founders of ARM

Dude, what you been smoking. If Apple was an orginal founder of ARM, they wouldn't need to License their technology. They woudl already be an owner..would they not?

The orginal CPU's were made by Acorn. Apple used many of them in their hardware back in the day. if Apple actually founded ARM, wouldn't it be stupid to license the usage of CPU by IBM and Motorola or Intel? Apple would have made their own.

Stop trying to make Apple be more than they are.
This is the best joke of the day.

This is ARM's Board of Directors which includes on of the original founders. http://ir.arm.com/phoenix.zhtml?c=197211&p=irol-govboard

Notice none of these people work or have worked for Apple.
Stop with the lies. Or jokes.

TechieXP said,

Dude, what you been smoking. If Apple was an orginal founder of ARM, they wouldn't need to License their technology. They woudl already be an owner..would they not?

The orginal CPU's were made by Acorn. Apple used many of them in their hardware back in the day. if Apple actually founded ARM, wouldn't it be stupid to license the usage of CPU by IBM and Motorola or Intel? Apple would have made their own.

Stop trying to make Apple be more than they are.
This is the best joke of the day.

This is ARM's Board of Directors which includes on of the original founders. http://ir.arm.com/phoenix.zhtml?c=197211&p=irol-govboard

Notice none of these people work or have worked for Apple.
Stop with the lies. Or jokes.

oh dear, someones just made a fool of themselves. I better PM them seeing how they won't read this

Comments about "Samsung will fail without this deal" are just as silly as, say, those claiming a few years ago Sony would fail if the PS3 fails.

Unless it's the company's flagship product or it's a small startup, one product does not a company make.

Chica Ami said,
Samsung needs Apple since Apple is their biggest demand in supplies, without Apple they have like nothing?

Cant tell if trolling

Chica Ami said,
Samsung needs Apple since Apple is their biggest demand in supplies, without Apple they have like nothing?

Yea, either trolling or you have no idea who Samsung is and how big they are.

brent3000 said,

Cant tell if trolling

Most Apple fan boys are generally unaware of the fact that Samsung has existed for nearly 30 years longer than Apple Inc and that they have been in the electronics business for at least 10-15 years longer than Apple. I suppose they just like to ignore everything B.A. (Before Apple) haha

Not trolling. Just an idiot who has never been in an electronics store and seen all the Samsung TVs, disc players and monitors. Samsung would be just fine without Apple's business.

Voice of Buddy Christ said,
Not trolling. Just an idiot who has never been in an electronics store and seen all the Samsung TVs, disc players and monitors. Samsung would be just fine without Apple's business.

+1 And ironically, Apple would probably suffer more if Samsung were not in the picture...

Chica Ami said,
Samsung needs Apple since Apple is their biggest demand in supplies, without Apple they have like nothing?
Are you that crazy or are you trolling. Apple is but ONE of Samsung biggest clients. Not the biggest.

THuis chaet show Sony is Samsung biggest client and likely always will be.

Rank/company

Part description

Buying (trillion KRW)

Percent of total sales


1 Sony

DRAM, NAND flash, LCD panels, etc...

1.28

3.7


2 Apple Inc

AP (mobile processor), DRAM, NAND flash, etc...

0.9

2.6


3 Dell

DRAM, flat-panels, lithium-ion batteries, etc...

0.87

2.5


4 HP

DRAM, flat-panels, lithium-ion batteries, etc...

0.76

2.2


5 Verizon Communications

Handsets, etc...

0.5

1.3


6 AT&T

Handsets, etc...

0.5

1.3

Voice of Buddy Christ said,
Not trolling. Just an idiot who has never been in an electronics store and seen all the Samsung TVs, disc players and monitors. Samsung would be just fine without Apple's business.
Samsung makes components for othet company's. Not just what you see in Best Buy or any other retailer. They make chips, capacitors and so much more. They are also an industry giant in korea. Electronics is their bigest business, not their only business.

One only has to google Samsung and look at the wealth of info you would find about them. Apple is weening themselves off Samsung, but they still need them.

A6? what will apple claim 74.34% faster? at the rate these chips are advancing A7 will surely spell the apocalypse

brent3000 said,
Its good to see in all hell, both companies can still get along nicely to fun each others legal battles
No...what it shows is Apple is very dependant on Sansung no matter how much they need them. Apple is doing what they must to stay relevant because a huge mistaje coudl cost them dearly. Best to stay with what works. Samsung wont screw Apple over, it makes themmoney. If they sign a contract they must live up to it, its business. You dont have to like your business partner.

I'm not really sure why people seem to think Samsung is a small company that would go bankrupt if they didn't supply stuff to apple

Revenue US$ 220.1 billion (2010)

Sure Samsung would lose a decent amount of money if they didn't, but its not like they'd become irrelevant and go bankrupt.

/- Razorfold said,
I'm not really sure why people seem to think Samsung is a small company that would go bankrupt if they didn't supply stuff to apple

Revenue US$ 220.1 billion (2010)

Sure Samsung would lose a decent amount of money if they didn't, but its not like they'd become irrelevant and go bankrupt.


Don't they make more money from shipbuilding anyway?

/- Razorfold said,
I'm not really sure why people seem to think Samsung is a small company that would go bankrupt if they didn't supply stuff to apple

Revenue US$ 220.1 billion (2010)

Sure Samsung would lose a decent amount of money if they didn't, but its not like they'd become irrelevant and go bankrupt.

As Cicero stated 2000 years ago....... "Pecunia not olet" meaning money does not smell.
Of course Samsung will sell chips to Apple. and make a profit of it.
During II World War several US based industries kept doing business with Third Reich ones like IG Farben...... what is the big surprise now?

Don't they make more money from shipbuilding anyway?

No.

Samsung Heavy Industries: $8.40 billion
Samsung Electronics: $133.78 billion

Fritzly said,

As Cicero stated 2000 years ago....... "Pecunia not olet" meaning money does not smell.
Of course Samsung will sell chips to Apple. and make a profit of it.
During II World War several US based industries kept doing business with Third Reich ones like IG Farben...... what is the big surprise now?

I never said that they won't keep supplying chips. I was simply pointing out that even if they didn't, Samung weren't suddenly vanish into thin air.

/- Razorfold said,

No.

Samsung Heavy Industries: $8.40 billion
Samsung Electronics: $133.78 billion


I never said that they won't keep supplying chips. I was simply pointing out that even if they didn't, Samung weren't suddenly vanish into thin air.

My bad; I was not replying/ confuting your specific statement, just replying to the broader question about why Samsung would supply Apple while the two companies are entangled in a bitter legal fight.
Apologies for the misunderstanding.

tsupersonic said,
They'd be stupid not to...They would lose so much money if they didn't.

Are they not losing money from NOT selling tablets, in certain countries?

If they're getting money for it, then why not? I would be surprised if Samsung decided against supplying the chips as a form of leverage for their legal issues.

The thing is, Apple has been building iOS around Samsung from the start. It would be a major change to have to retool it for another architecture. It would essentially give iOS the same weakness that Android suffers from.

Voice of Buddy Christ said,
The thing is, Apple has been building iOS around Samsung from the start. It would be a major change to have to retool it for another architecture. It would essentially give iOS the same weakness that Android suffers from.

Its built around ARM not Samsung

Anaron said,
If they're getting money for it, then why not? I would be surprised if Samsung decided against supplying the chips as a form of leverage for their legal issues.

I'm sure there are contractual obligations. Samsung won't be able to suddenly pull production of the chips.

Voice of Buddy Christ said,
The thing is, Apple has been building iOS around Samsung from the start. It would be a major change to have to retool it for another architecture. It would essentially give iOS the same weakness that Android suffers from.
Samsung just makes the chip. Any chip maker can make them. Whther they can on the same process and at the same speed and in sheer numbers, TSMC can't even come close to Samsung. In fact no one can really.

Muhammad Farrukh said,
Of course they're gonna supply the chips to Apple.
Where are they gonna get the money to make new Galaxy S'es?

From their MANY billions they get from their electronics division? Let alone their white goods?

HoochieMamma said,

From their MANY billions they get from their electronics division? Let alone their white goods?

I agree, but still the revenue they make from Apple is still huge and cant be ignored.

HoochieMamma said,

From their MANY billions they get from their electronics division? Let alone their white goods?


Surely he was joking, and yes maybe Samsung could get by without Apple, but they'd be retarded to pass up such an opportunity.

dead.cell said,

Surely he was joking, and yes maybe Samsung could get by without Apple, but they'd be retarded to pass up such an opportunity.

I think Apple would have a harder time without Samsung honestly. They're far more reliant on them than Samsung is on them...

dead.cell said,

Surely he was joking, and yes maybe Samsung could get by without Apple, but they'd be retarded to pass up such an opportunity.
Yeah Sure. However, its Apple that needs Samsung, not the other way around. See its Apple that cant take any risks trying to change suppliers. if Apple switches and that other company fails to meet demands, Apple will look really stupid. They need Samung. Even tho Samsung makes a lot of money from Apple, they dotn need Apple. Samsung is a comglomarate that doesn't depend one single product to make money.

Sorry, stop trying to pawn off that Samsung needs Apple. They simply don't. When Sammie loses Apple as a client, they will surely lose some money. As any company who loses a big client. But Samsung isn't worried, Apple can be replaced with names like Microsoft to fill that gap very easily. And teh fact Sammie sells plenty of their own phones and tablets. Which i why Apple is trying to stop them.

Muhammad Farrukh said,
Of course they're gonna supply the chips to Apple.
Where are they gonna get the money to make new Galaxy S'es?

Apple buying parts from Samsung for the iDevice market represents roughly 7% of Samsungs income.