Apple has cut its orders for memory chips from Samsung for its next-generation iPhone as it tries to reduce its dependence on its legal foe and competitor, according to industry sources.
Samsung has been a primary supplier of both DRAM and NAND storage for iPhones, iPads, and iPhones, but Apple has been reducing its orders to the South Korean electronics giant in an effort to diversify its supply lines, according to aReuters report.
Meanwhile, the Korea Economic Daily reported that Apple had completely dropped Samsung from its list of memory chip suppliers for the first shipment of the new iPhones, choosing instead to go with Toshiba, Elpida Memory, and Korea's SK Hynix.
However, Reuters' source said Samsung remains on Apple's list of initial suppliers for the iPhone but is making up for the reduction with orders from other handset makers, notably Samsung's own phone unit. The source also said the decision was unrelated to the recent courtroom clashes between the two tech titans.
Apple is said to be trying to reduce its dependence on Samsung, the world's largest consumer electronics maker by market value. Apple reportedly tried to secure exclusive access to Taiwan Semiconductor Manufacturing Co. smartphone chips by making a $1 billion investment in the chipmaker -- possibly in a bid to replace Samsung's contract for the A6 processor. TSMC reportedly rejected the offer, saying it had no need for investment capital and was unwilling to sell part of itself.
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