Apple finds new memory suppliers for iPhone and iPad, pushing Samsung further away

Business

As Apple and Samsung continue to battle over patents and product design, Samsung seems to be positioned to take the biggest hit. The South Korea-based electronics giant has already seen sales of its tablet blocked in multiple regions and Apple is digging deeper. Dow Jones reported back in February that Apple was expected to make roughly $7.8 billion in component purchases from Samsung in 2011, but the future of the relationship is now in jeopardy. Reports from this past June that Apple moved away from Samsung for its mobile processors were seemingly confirmed last month, and DigiTimes on Thursday reported that Apple is looking beyond Samsung for its mobile memory chips as well. Read on for more.

DigiTimes reports that Apple has secured two new suppliers for its DRAM and NAND flash chips. Japan-based Toshiba and Elpida Memory have received increased orders for memory chips destined for Apple’s mobile devices like the iPhone and iPad, the site reported, citing multiple unnamed industry sources. Toshiba will supply Apple with NAND flash chips while Elpida will supply mobile RAM. Is is unclear if Samsung, the world’s leading supplier of both NAND flash memory and DRAM chips, will retain any of Apple’s mobile memory business or if the iPhone maker will move all orders to Toshiba and Elpida.

54 Comments
  • Anonymous

    Hope some 64GB chips are in the mix this time.

  • Anonymous

    This is hardly a surprise. My question is this: if/when they move away from Samsung for the screens, will the quality still be comparable? I know that there are a lot of companies out there, but I don’t know of any companies that are on the same level in the mobile arena when it comes to SAMOLED HD+ ZOMG edition.

    • http://twitter.com/AeroHil Jon L

      apple, most likely, will not settle of anything less.

      • Anonymous

        Dream on. cheapest my friend.

      • Anonymous

        They might not want to settle for anything less, but what is out there that’s comparable?

      • Anonymous

        Nokias Clear Black Amoled.  But they ain’t getting that either ;p

  • http://twitter.com/GRZLA Grizzly Atoms

    This is a bad move on Apple’s part. The only reason their iPhone’s run well is because Samsung basically makes everything inside of them.

    • Anonymous

      Yes. The Japanese are notorious for their poor quality and workmanship.  true story™©®

    • Anonymous

      Somehow I think Apple goes undergoes more extensive testing of memory components from suppliers than you do.

      • KCRic

        Somehow I think they must have already done that – hence them using Samsung originally. By your logic, that means none of the other suppliers were up to par. Now they must settle for second best. 

      • Anonymous

        Funny. I thought it was approximately 2005? That Apple used their cash to make long term memory deals. I did not know that it was recently. I was also unaware that samsung was the only company on the planet capable of producing high quality components and no other company could innovate to or beyond samsungs level.  true story™©®

      • Anonymous

        That’s a funny thing you say because it shows you know only hype. When Apple switched from Power PC to Intel their devices became less stable. Most would say that Vizio televisions are just as good as Samsung or Sony’s at a far lesser price.

        You have tested nothing which means you know far less than Apple. In fact, from your inference, you only think that Samsung makes the best stuff because Apple purchased components from them. Somehow I think that the company who has continually received awards on hardware quality and customer support knows more than you and isn’t willing to hurt their brand. With Apple’s cash they could open their own manufacturing plant and build their own memory chips if they felt it necessary.

      • Trisjen Harris

        Exactly, say it again please. Toshiba really, give me a break.

      • Anonymous

        Wow. You’re a dipshit. So it is absolutely implausible that toshiba or any other company could make quality components? Apple is so screwed now right? Everyone sell your apple stock!! It’s over!!! Huge mistake!!! Changing a component supplier is a no no!! That’s business 101.  true story ™©®

    • Anonymous

      Bad move on Apple’s part? What about Samsung?

      One of the main goals of a business is to retain your customers, and it’s especially important to retain your NUMBER ONE customer. 

      If I was a Samsung shareholder, I’d be pissed!

      • http://twitter.com/AeroHil Jon L

        agreed. they shot themselves in the foot.

      • Bredprete

        Steven75, apple realized that they are rearing a serpent head, that samsung is a master of improving others technology, that samsung will grow from others idea. it is like sony coming up with PS by improving the idea of nintendo. apple can always go to the likes of toshiba and other parts supplier anytime any soon. the technology is the same, but marketing is everything which samsung is known for. AMD and Intel are the same except that Intel has the marketing prowess that got them the upperhand.

  • Anonymous

    But Isn’t samsung supposed to be the company holding all the cards? Didn’t all the fandroids say samsung could and should cut apples supplies off? Haha. Poor dumb samsung. Gonna lose more money now. Too bad samsung pissed away 10+ billion into a new memory factory and now their biggest customer is saying screw you. Lol. Samsung will be dead in two years.  true story™©®

    • Anonymous

      Samsung is not gonna go out of business any time soon. They are in a lot of industries, and Apple makes up less then 10% of their business. That said Apple has been known for securing the best components for their phones and at same time preventing competition from having access to them. Considering they chose Samsung before this means Apple though Samsung offered the best. At the end of the day, Apple is now settling for 2nds while their competitors will get access to these components.

      This is a loss for both companies, but at end of the day Apple and it’s consumers are the ones that will end up suffering the most.

      • Anonymous

        Yes I see your point. I was unaware that when the virgin Mary squirted out Jesus samsung cut a deal with god to be the ONLY producer of the best quality components from year 1 until the end of time. I have been enlightened.  true story™©®

      • Anonymous

        If Apple chose to change suppliers because another one was better that is one thing, but they changed suppliers due to the legal battles going on. I am not saying samsung will always be the best and if you look back Apple didn’t ALWAYS use samsung for some parts. Apple re-evaluates every year and invests large sums of money to secure exclusives, and guess what, Samsung won a lot of the components every year due to their quality. Steve Jobs himself said this is what gives Apple its advantage.

        This time around though they plan to cut out Samsung completely, which means their products will not be receiving “The Best” every year. While competitors will have access to this inventory which Apple used to have exclusives to.

        The other component suppliers such as LG, Toshiba and etc also make Android phones FYI..so it is a matter of time until Apple is forced to cut them out too..and where would that lead you in the end to? 

        And if you think I am making this up let me give you an example. When HTC released the Evo they had a HUGE issue securing LCD screens which led to large shortages for 3 months. This effectively had sprint turn down contracts and sales due to the lack of supply.

        Supply is vital, and Apple opening up supply to competitors while lowering their own can’t possibly be good for Apple..

      • KCRic

        Scroat, you’re a troll plain and simple. Of course quietstorms is as much of a complete idiot as you are. You both completely miss the entire point of what someone’s saying just because you perceive it as an attack on your precious Apple. Stating the obvious – Apple must now settle for second rate components – is not inaccurate. They chose Samsung years ago for a reason, it was their top pick when it come down to cost vs. performance vs. quality. So whoever they use now will, at best, be their second pick. 

        Now fu*k off. True Story.

      • Anonymous

        Or the money they spent to secure supply was making other companies he best.

      • Bredprete

        I agree, thats why apple must veer away from a copycat like samsung. least samsung could grow out of the idea that apple hatched. improving of ideas of other companies is samsungs forte by utilizing their flotilla of engineers to dissect other products. i don’t believe in the best. the technology is the same, process is the same, except the marketing.

      • Anonymous

        They haven’t dropped samsung completely. They have added other suppliers. In a few years will they have dropped samsung? Time will tell. This could be a strategy to get a better contract. Were you in the room when they decided? No? Me neither. I’m willing to give Tim Cook the benefit of the doubt. I think he and Apple have earned it. Apple has always emphasized quality. If they think they can phase out samsung and still maintain that quality then have at it. 

      • Bredprete

        I think you’re being paid huge sum by samsung. the chips made by toshiba and other supplier will perform   even better than what samsung make. cost is the only reason why apple went to samsung. samsung is a company that is always scared. making everything and into sponsorship to make the samsung brand imprinted onto livery or jersey more often. look they are number one now in TV but they are losing heavily in this business. one piece of advice “YOU CANNOT BE EVERYTHING” YOU WILL LOSS IF YOU CANNOT BE A MASTER OF ONE”. Samsung just improved others idea then patent it at the expense of a company that started the technology. And by the way, the so. korea government may have assisted it also to become what the name samsung is now. so let it be known that when steve jobs of apple declare to the whole electronic world that they choose samsung for quality, he did it to assure the apple loyalist and converts that the apple product is of quality. i am 110% sure that apple would do the same if it were HTC that supplied them with parts. the koreans are always scared, the example of which is their high rate of suicide. one thing more, the korean companies benefited much from japans economic bubble burst. how? try to research it.   

    • Anonymous

      Tut tut.
      You best go i just heard the school bell ring.

    • Justin

      Scrota has saggy tits

  • http://profiles.google.com/jtabercrombie Jacob Abercrombie

    Great idea, make the iPhone even more likely to fail by putting cheap chips from tiny Asian companies in it.  Good job Apple.  How much was that Galaxy S II again…?

    • Anonymous

      I know. The corner cafeteria by my office is bigger than Toshiba.

    • Anonymous

      Toshiba is so tiny. And thank god Samsung is not Asian.

  • Anonymous

    Apple will rule the world.  true story™©®

  • Anonymous

    FIRST!! Kawasaki!

  • Anonymous

    I thought Lays made all the chips for Apple?

  • http://profiles.google.com/jtabercrombie Jacob Abercrombie

    Hahaha, yeah, one of the largest chip manufacturers in the world will go out of business because they aren’t supplying for one phone?  In the same boat, now that Apple has gone after Samsung like they have, there is no other large chip manufacturer that want’s to work for them because they’re scared of getting screwed over by big A.  That’s why they haven’t gone to Toshiba for a large amount of their chips yet, and why they have to use tiny companies, with probably inferior products. Good try iTard.

    • Anonymous

      Time to wake up. Barney’s on.

  • http://twitter.com/computer_tweets KW

    “pushing Samsung further away”  Maybe because Samsung is also producing better phones at a faster rate and Apple is just jealous.

    • Anonymous

      Omg! You read my mind. They’re jealous of everything samsung. They’re jealous of their profitability, their market cap, their perception, their marketing, their brand, their management. Everything. You sir, are a genius. Typical of us Goofans (aka Apple Haters!)

  • http://twitter.com/Iridium08 L Scott

     Meanwhile – Samsung just announced the start up of “Line-16″, the largest memory fabrication line in the industry currently. If there weren’t any other suppliers out there that could match Samsung before, how are they going to do so now? Apple would be wise not to burn this bridge especially if they’re looking at bringing the iPhone to Sprint and at some point T-Mobile (USA).

  • Sdavissy

    Unreal how much samsung will lose when this is all over. Poor leadership will cost them 7-10 billion dollars per year going forward.

  • Anonymous

    Good. makes me feel dirty knowing thats parts for apple have been made alongside my samo parts.
    Also for the record, good luck for the new supplier. their gonna need it.

  • http://pulse.yahoo.com/_ROSNCEUH6GSBXAWCKQZK2XQAFY Wikileaks is Democracy

    Samsung belongs to a Type 1 culture, and such a devoted thief of intellectual property. A source of Korean pride. An abuser.

    • KCRic

      Yes because Apple has never stolen anything from anyone at any point in history. 

      s/

      Are you stuck in a parallel universe or is your head really just that far up your ass? Your name says it all….. 

  • Anonymous

    Bye bye Samsung..

  • Sweet James Jones

    We don’t know the whole story here.

    Apple is a notoriously cut throat business partner, and they always crunch people on margins. Samsung could not really want their business. They may be able to replace half of the volume that Apple gives them and make the same amount of money because of higher margins. Apple always constrained supply of components to competitors because they took so much supply. Now that Samsung has capacity, they could be in for a lot of business from people who were previously shut out.

    Apple may have wanted them to end their phone and tablet sales completely, and Samsung didn’t want to become a back end supplier only. That might have cost them more money. 

    The people at Samsung are smart. Maybe they started getting consulting from HP and RIM, but I would give them the benefit of the doubt.  They have the best parts which is why Apple buys from them now. Apple moving won’t change that fact, and other suppliers will want their products.

  • Trisjen Harris

    They don’t have the quality that Samsung does, so this will be the beginning of apple products turning to crap hardware wise!

  • Louise Schmidt

    If you thought Apples supply chain where slow before just wait because nobody can match Samsung

  • http://twitter.com/bragzter Bradley Larcher

    I knew this would happen sooner or later, with the two of them suing and counter-suing each other. It was bound to get ugly. For sure, Samsung is gonna lose a lot of money, but how will that affect the iPhones and iPads performance? Will it be the same? Will Apple run back to Samsung if Toshiba and Elpida doesn’t meet their expectations?

  • http://twitter.com/jackrazzlin Jack Azlin

    How long until Toshiba gets sued for “stealing ideas”?

    Samsung will do just fiiiine without Apple :)

  • Anonymous

    Exciting news for the fandroids!!!! Any future Apple products will definitely fall apart within weeks of purchase without Samsung memory chips!!!!! LMAO @ all the idiots.  true story™©®

  • Charlz6255

    New supplier same problem later. Why not source/produce those major components n the U.S. itself to help ur unemployment problem, solve ur very huge trade deficit against asian countries who may by now laughing at these american companies’ short sightedness or perhaps greediness. gs

  • http://pulse.yahoo.com/_CZLGT33THY7YZA3NHUCJJA7LGU haloguy628

    I got a feeling that jobs is starting to operate on his feelings again. Just like he did when he would not license Apple OS to other PC/Laptop manufacturers. The rest was history with apple scrambling for crumbs in the PC market and so shall be repeated again.

    Open your eyes lemmings. jobs is a terrible human being with golden tongue. Nothing more nothing less.

  • Anonymous

    Seriously BGR, all this apple news is getting out of hand. There are so many pointless posts about Apple on here  right now.

  • Anonymous

    Wow Zach, I normally admire your writing on this site but that entire first paragraph was utterly useless to what information you were trying to convey in the title LOL.

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