Apple reducing Samsung’s role in supply chain – reports

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Several reports have surfaced citing supply chain sources who say that Apple is reducing the number and type of components being ordered for iOS devices from Samsung.

Reuters claims that Apple has been cutting orders for memory chips to the Korean company, with the source saying “Samsung is still in the list of initial memory chip suppliers (for new iPhones). But Apple orders have been trending down and Samsung is making up for the reduced order from others, notably Samsung’s handset business.”

Another report from The Chosun Iblo appears to confirm this and adds that Apple is leaving Samsung screens out of the equation. The report states that Apple will be sticking with Samsung when it comes to application processors however. The Chosun Iblo report also cites insiders as saying that “Apple stopped buying products from Samsung to put the brakes on its rapid growth in the smartphone market.”

A downward trend in purchases from Samsung is not surprising given the legal tensions between the two companies, though it isn’t clear whether Apple is simply broadening their supply chain or if the decrease is motivated by the ongoing patent battle with Samsung. Given the current relationship between Samsung and Apple, it isn’t a stretch to believe that Apple might be cutting one of Samsung’s revenue streams by doing less business with a company it believes is infringing on its products.

Source: AllThingsD

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