Apple And Samsung Will Remarry To Produce New iPhone
Despite its utmost endeavors to reduce the dependency on Samsung, Apple has not been able to get away without having occasional love affairs with its major rival.
Apple found a sort of replacement for its chips demand for the project of iPhone 6. The Cupertino was optimistic to eliminate its dependency on Samsung by chiefly relying on Taiwan Semiconductor Manufacturing Co. It got the Ax family processors from TSMC but now, according to a report in Re/code, Apple is again turning to Samsung for fabrication of the next-generation A9 chip.
Samsung has distinguished itself from TSMC and others with its advanced manufacturing process. For example, it has successfully shifted to 14 nanometers chip from conventional 20 nanometers by shrinking the size of the transistors. This ability of packing a larger processing power in smaller space has, indeed, given Samsung an upper hand in the technological world.
The deal was reported by a South Korea-based Newspaper called Maeil Business. But the companies never affirmed nor denied the news.
Whatsoever, it is a fact that Apple has been working with Samsung Semiconductor for the processor production in the past.
But the relationship often remained in ambivalence, now at peace now at war. The relationship got in an extremely malcontent phase in 2011 when iPhone maker alleged Samsung of replicating its tablets and phones.
Then the scenario got pacified. And when Apple was working on iPhone 6, it divided the workload between TSMC and Samsung.
As I mentioned above, now Samsung has an edge and that is advancement in its fabrication technology. All the competitors in the field are seemingly threatened by Samsung’s progression. Among the struggling chip producers is Qualcomm, which has been considered as a tycoon in the business of producing chips for elite devices.
Samsung has not divinely blessed with the aforementioned market edge, but it has paid the price. To boost up its capacity in Semiconductor and display business, it has spent an eye-popping figure of $21.4 billion and is like to increase the investment this year.
In October, Dr Kinam Kim, president and general manager of the semiconductor business of Samsung, hinted reporters about the expected boost in Samsung’s profit after transaction with Apple. But Samsung has not publicly announced that Apple will be its customer for 14-nanometer chips, production of which is continuing rapidly.
However, Samsung’s optimism for economic puff along with fabrication of chips in numbers, suggests that it is ready to contribute in the production of next iPhone.
Abubaker Zahoor writes on diverse topics with special interest in innovations, tech-ethics, and inter-and intra- organizational business relationships.