Daily Management Review

Samsung to Supply Apple with Hardware


South Korea's Samsung Electronics has won the tender for supplying Apple with processor A9, core chips for the next iPhone model - despite the continuing intense competition on a global smartphone market, Bloomberg reports, citing informed sources.

Rajan Sambandam
Rajan Sambandam
Last year, Taiwan Semiconductor Manufacturing Co. (TSMC) managed to put an end to the monopoly of Samsung's production of chips for the iPhone and iPad, but now Samsung seems to restore the relationship with Apple.

Production will soon begin on the Samsung factory in Yongin, located 40 kilometers south of Seoul. Additional orders for chips will be handed to Samsung’s partner, Globalfoundries Inc. company.
According to analysts, the supply of components for the iPhone and Samsung's own smartphone will help the South Korean unit of concern for the production of logic integrated circuits to make a profit this year of 1 trillion won ($ 914 million) against the loss in the same amount in 2014.

Samsung originally wanted to insert Snapdragon chip, made by Qualcomm, in Galaxy S6, but then decided to use their own development Exynos.

Meanwhile, this year, iPhone sales in China reached a record level for the three months ended February 28, 2015, due to demand for the iPhone 6 on the eve of Chinese Lunar New Year, the survey of Kantar Worldpanel ComTech showed.

This allowed Apple to increase its share of the smartphone market in China to 27.6% in terms of sales. IPhone 6 during this period became the most popular smartphone among China's urban population - 10.2% of sales. In second place - RedMI Note (Xiaomi), the third - iPhone 6 Plus.

In the US and Europe, iPhone 6 has also been the sales leader among all smartphone manufacturers, although the percentage of iPhone in the US market in December - February fell to 38.8% from 39.3% over the same period a year earlier. In Europe, the number of smartphones on the Android operating system has fallen by 2.9 percentage points to 67.6%, while the popularity of iOS increased by the same 2.9 p.p. In the US, the share of iOS decreased from 39.3% to 38.8%.

Kantar’s experts expect that the speedy entry of new Android phones from Samsung, HTC, LG and Huawei ‘will add a fire in the battle’.

source: bloomberg.com