The Apple and Samsung feud has escalated to the next level. The Cupertino-based tech giant is reportedly cutting its order for memory chips from Samsung.
In an attempt to slash its dependency on arch-riva Samsungl, Apple is said to be diversifying its memory-chip supplier's portfolio by shifting orders from Samsung Electronics Co. to other Asian chip makers, revealed a Wall Street Journal report.
Citing people familiar with the matter, the WSJ reported on Friday (Sept. 7) that Apple is diversifying its component suppliers as a result of the recent patent dispute with Samsung. In late August, a U.S. federal jury awarded Apple damages of $1.05 billion, ruling that Samsung copied some features of the iPhone and violated Apple's six patents related to design and software.
Additionally, the Korea Economic Daily reported that Apple not only reduced the number of orders but has completely chopped off Samsung from its list of memory chip suppliers for the new iPhones. In the past, Samsung has been the primary supplier of both DRAM and NAND storage for iPhones, iPads, and iPhones, but now companies like Toshiba, Elpida Memory, and Korea's SK Hynix will replace the Korean company.
Moreover, the Korean Web site has also indicated that Apple, instead of using Samsung's screens for its new smartphone and the iPad Mini, will use screens from Korea's LG Display and Taiwan's AU Optronics.
Reportedly, a few days back Apple attempted to make a $1 billion investment in Taiwan Semiconductor Manufacturing Co. (TSMC), the smartphone chip-making company, in an attempt to to gain exclusive access. TSMC, however, declined the offer and was unwilling to sell part of the company.
