Apple Inc. is an American electronics manufacturing giant which produces and markets, computer software, hardware and many other consumer electronic devices worldwide. Iphones, Ipods, Ipads and Macintosh computers are the best known products that had brought billions of dollars of revenue for the company, over the years. Fortune magazine had selected Apple Inc. as the most admired company in the world consecutively for three years (2008, 2009, and 2010).
Samsung, the largest technology company in the world (in terms of sales), was the only supplier of chips for the electronic gadgets manufactured by Apple Inc. This South Korean multinational corporation has a numerous international businesses under its large umbrella of establishments such as Samsung electronics, Samsung Heavy Industries (world’s 2nd largest ship builder), Samsung Life Insurance, Samsung Everland, etc. . . .
A5 chips from Samsung were been used in the ipad 2, which was the recent hit in the market from the American company. Now Apple Inc. had made a new deal regarding the production of chips and circuitries for its future gadgets, with a Taiwan-based company named TSMC. Notably, TSMC had started trial manufacturing of next generation chips to be used with Apple products. Prior to the deal, it has updated its technology and production capacity at a massive expense of $7.8 billion.
As A-x chips were used from customarily in Apple products, Apple Inc. shall request TSMC to manufacture A5-similar chips. But the patent for the system design and the memory packaging of A-x series of chips lies with Samsung. Hence, chipsets has to be redesigned and tested before use, which is an additional issue to be resolved.
The reason behind Apple Inc.’s decision could be its ongoing disputes with Samsung over certain patents and other chip design issues. Moreover, Samsung had become Apple Inc.’s toughest competitor in the sales of smartphones and tablet devices. In spite of the cold war between these two companies, analysts say that both the companies shall need each other for their growth. A few other sources suspect that Apple Inc. would not put up 100% of the chip requirements before TSMC and its partnership with Samsung shall continue but in a reduced phase. However, it is not going to be easy for Apple Inc. to pick up business all of a sudden with its new friendship and all the three companies involved shall look for their gain by cobbling issues with one another…
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