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Samsung will supply Apple with an A9 processer


News by Luke Jones on Thursday October 02, 2014.

samsung news · industry news · luke jones

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Apple and Samsung have a strange relationship. Cupertino has dragged Samsung through the courts of the world in largely successful patent infringement lawsuits where the Korean giant was found to be copying the iPhone. However, Apple uses Samsung extensively as a components partner, with the electronics giant supplying a large amount of chips for the iPhone and iPad. Samsung has all but confirmed that the odd couple relationship will continue with the next Apple chip, the A9.

Of course, we are at least a year off from that, with the A8 only now taking its bow in the iPhone 6 and iPhone 6 Plus. Kim Ki-nam, president of Samsung's semiconductor business and head of System LSI business spoke to reporters at the company's Seoul based headquarters and confirmed that it will continue to supply Apple. Whether it was meant as a little dig or not, Ki-nam also said that with this supply chain intact profits "will improve positively".

Samsung is expected to start producing application processors (APs) for clients such as Apple, Qualcomm, and AMD, using its 14-nanometre process around the end of the year.

While the relationship between the companies still exists, it is loosening. Last year for the A7 processer, Samsung made 100% of the chips, but in this year's A8 the number has been reduced to just 30%. TSMC has been Apple?s chief supplier this year, but it is unclear whether the company can meet demand in 2015, which could mean Samsung's load increasing again.

The easy question would be, why do these enemies continue to work together? For Apple, Samsung makes the best quality chips at a cost effective price, but if TSMC can prove itself next year Cupertino may be willing to ditch Samsung altogether. That is an unlikely scenario, but there is little doubt that Apple is in the better position here. If Samsung pulls the plug on this deal, Apple will simply go to someone else and may have to pay more, but if Apple pulls the plug Samsung will lose a sizeable revenue stream to supply chips for the company.

As it stands now, neither company does want to pull the plug, but Apple is certainly making more moves towards doing so.

source: ZDNet

 
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Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.

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