Samsung index Consumer DRAM Apple reduces iPhone memory chip orders from Samsung

Apple has reduced its order of memory chips from Samsung for its new iPhone as the two companies continue a bitter legal dispute throughout the world's courts.

Apple has reduced its order of memory chips from Samsung for its new iPhone as the two companies continue a bitter legal dispute throughout the world's courts.

 
A source close to the company told the Korea Economic Daily that Apple will not be ordering memory chips from Samsung for the first batch of its new iPhone, expected to be announced next week.
 
Samsung has been a primary supplier of micro processors and DRAM and NAND memory chips for Apple's iPhone, iPad and iPod ranges, but that may be a thing of the past as the Cupertino, California-based company looks elsewhere to source its components.
 
Apple is now buying chips from Toshiba, Elpida and SK Hynix, shunning the South Korean electronics giant, which it claims copied its designs for smartphones and tablet computers.
 
Samsung index Computing DRAM Apple reduces iPhone memory chip orders from Samsung
While this will hurt Samsung's revenue, the damage is expected to be minimal. Analysts at Bernstein believe that only 2.5 percent of Samsung's earnings this year come from Apple's memory chip orders, according to Reuters. 
 
Samsung has also been dominating the mobile market with its Galaxy smartphones and tablets, with roughly two-thirds of its profit coming from these products, making Samsung the number one smartphone manufacturer in the world.
 
The unnamed source said that Apple had already been looking to source alternative suppliers before difficulties arose with Samsung, but that is unlikely to wash with many onlookers, given how brutal the legal wrangling has been between the two. Apple secured a major victory recently when a US jury decided that Samsung had infringed its patents, requiring it to pay out over $1 billion, but Apple has also lost cases to Samsung in various countries – and the patent war is ongoing.
 
Source: Reuters