Samsung to supply bulk of chips for Apple's next iPhones

After it skipped a generation, Samsung is expected to once again become the main supplier of chips for Apple’s upcoming smartphones.

According to a report from South Korea’s Maeli Business Newspaper, Apple will purchase the bulk of its upcoming processors from its biggest rival. This is a return to form from a few years back when Samsung was one of the only companies with the reach and manufacturing capability to satisfy Apple.

Thanks to numerous legal disputes, being direct competitors in the market, and various other factors, Apple reportedly signed an exclusive deal with TSMC for the iPhone 6 and 6 Plus supplies leaving Samsung out of the loop for this year.

But if this report is correct, then Samsung - still one the biggest chip manufacturers out there - will account for 75% of the chips found in the next generation of iPhones. The report doesn’t mention how much this deal would be valued at nor who else might supply the remainder of the chips, though Samsung's products will reportedly come from its plant in Austin, Texas.

Considering the huge success Apple has seen with the current iPhones and how Samsung seems to be a on downward trajectory, it will be interesting to see how things play out as we get close to the summer.

Source: MK Business via: Reuters

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