Apple and Samsung’s long-time battles have caused a lot of question as to whether or not they will continue their somewhat friendly chip partnership. Now, the questions seem to be answered as Apple is reportedly expected to discontinue or at least decrease their relationship with Samsung. They are beginning the process by decreasing the number of chip orders placed to Samsung, undoubtedly attempting to make the transition as seamless as possible. It is currently unclear as to whether or not they aim to be completely independant of Samsung’s chips, or just decrease their overall dependence on the company.
While this may seem like bad news for Samsung, the company does not appear to be worried. Digitimes reports, “The potential loss of Apple's application processor (AP) orders, however, is unlikely to have a significant impact on Samsung's logic IC operation.” Samsung’s logic IC operation is instead expected to be fully preserved and elevated through the company’s well-established smartphone business.
A rather interesting piece of information also provided by Digitimes is that currently, Samsung is only able to produce about 30% of the APs required for Samsung’s own smartphone devices. With Apple no longer sucking up the majority of Samsung’s production capacity, then perhaps it will allow the company for focus more intensely on their own devices.
As it stands, the only devices lucky enough to actually receive Samsung’s own chips are high-end devices such as the Galaxy S3 and the Note 2. The rest of the devices’ APs are imported by manufacturers such as Qualcomm, Nvidia, Broadcom, ST-Ericsson and Marvell. This is likely to change as the report predicts that by the end of 2013, Samsung will provide the chips for about 50% of their devices.