Apple cuts back on Samsung memory chip order for iPhone 5
Reuters has reported that Apple has reduced its orders for memory chips for its new iPhone from its main supplier and competitor Samsung Electronics.
Samsung produces micro-processors, flat screens, and DRAM and NAND memory chips for the iPhone, iPad and iPod. Apple has cut back its orders on these as it seeks to diversify its supply chain lines.
Instead Apple has increased orders of DRAM chips and NAND flash memory from existing contractors SK Hynix, Toshiba and Elpida Memory.
"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," the Reuters source said.
This is the latest news from a very public patent battle, which was won by Apple last month after a US jury found that Samsung had plagiarised key features of the iPhone. Apple was awarded over $1 billion in damages.
The Drum reported last week that investors have warned Apple not to go too far in alienating the South Korean giant.
Ben Rogoff at polar Capital explained it would mean for Apple: "Apple needs strong suppliers and needs to be careful what it wishes for. If this relationship deteriorated, you’d see Apple looking to diversify its supplier base, but that’s hard to do."