Apple Cuts Orders on Samsung's Components for iPhone 5 - Reports

Apple to Reduce Orders from Samsung to Diversify Supply Chain

by Anton Shilov
09/06/2012 | 11:08 PM

Apple is reducing orders on components for its sixth-generation iPhone made by its arch-rival Samsung Electronics. The company reportedly wants to diversify its supply chain and is spreading its orders among all of its partners more evenly than before. Still, Samsung remains a key partner for the Cupertino, California-based firm.

 

Apple has excluded Samsung and its subsidiaries from supplying dynamic random access memory (DRAM) chips, displays well as batteries for the initial production run of the next-generation smartphones from Apple, according to Korea Economic Daily. Given the fact that LG Electronics, Sharp and Japan Display have been the primary suppliers of retina-class screens for iPhones, the fact that Samsung will not make displays for iPhone 5 is barely surprising. Nonetheless, choosing Elpida and SK Hynix for DRAM and Toshiba for NAND flash memory over Samsung is something unexpected.

"Samsung is still on 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," an anonymous source told Reuters news-agency.

Although Apple and Samsung have been clashing in courts around the world and accused each other of patents infringements, Samsung remains a key partner of Apple. For example, the company is the exclusive maker of Apple A-series system-on-chips that power Apple iPhone, Apple iPod touch, Apple iPad and Apple TV set-top-box.

Apple and Samsung did not comment on the news-story.