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Apple Cutting Samsung Fabrication of Processors & Displays for iPhones, iPads ⭐⭐⭐⭐⭐

April 10, 2013

Introduction and Perspective: Rumors. What do they mean. To some, rumors are authentic wispers of truth from people that are in the know. To others rumors are complete fiction and the food for fools. And of course there is everything in between. For us these creations are an interesting combination of “ambitious wish lists of enthusiasts” with “the notions of amateur marketing executives,” in effort to determine the Next Iteration of an existing product, or more agressively, a New Product. Indusrty require Non Disclosure Agreements to be entered into by their employees and engineers. In reality, “The people that know, don’t talk; and the people that don’t know, talk.” However, it is interesting to hear about these “forecast.” We pass the most interesting for you to digest or discard. What do you think ? Comment below.

Apple is sharing confidential data for its next A7 system-on-chip (SoC) with the Taiwan Semiconductor Manufacturing Company (TSMC). TSMC has begun ordering its contractors to supply equipment to produce Apple’s next processors using a finer 20-nanometer level processing technology,’’ said an executive at one of Samsung’s local partners in Korea by telephone, Wednesday, 4/10/2013.

✔ Unlike conventional memory chips, which are only used to write and store data, application processors are used to power computing devices, and are more profitable and less volatile price-wise. Apple has been paying billions of dollars to Samsung to use the latter’s application processors in its i-devices. Amid sluggish demand for conventional chips hit by poor sales of personal computers, Apple’s orders were a big help in lifting Samsung’s semiconductor business.

✔ ”Apple is cutting the use of Samsung displays for its products. Now the deterioration of ties has expanded to chips. You should remember that the application business is one of Samsung’s new growth engines in which the firm is heavily investing,’’ said an official of another top-tier parts supplier to the Korean company.

✔ With Competition at Super-Hot Levels, its reasonable to expect that the recent rift between the two companies has widened, thanks to ongoing legal battles and fierce rhetoric. The two historically share a deep business relationship, but cracks are beginning to widen. The chasm between Samsung Electronics and Apple is expected to widen further as the U.S. electronics giant has excluded its Korean rival from a project to develop A7 application processors, due to be released in the first half of next year.

✔ Samsung, which sees Apple’s decision as a signnificant negative, (the loss of 200 million of units is a huge number) plans to maintain growth momentum by expanding its business with NVIDIA through increasing contractual chip orders. Sources said Samsung hopes its handset division will fill the gap as the company’s Exynos-branded processors will definitely be used in the next line of Galaxy devices.

✔ The company has a dual strength in parts and finished goods. Its displays and semiconductors are used in Samsung TVs, home appliances, smartphones and tablets. ”If Samsung fails to win Apple orders for A7 chips, then some of Samsung’s system chip-manufacturing lines will be stopped. That’s a scenario Samsung really doesn’t want to see,’’ said the official, adding the company is injecting more resources to satisfy NVIDIA’s stiffer requirements for graphic chips on a contract basis to minimize the impact.

Rumor ID: Apple Cutting Samsung fabrication of Processors & Displays for iPhones, iPads ⭐⭐⭐⭐⭐.

Rumor Rating: ⭐⭐⭐⭐⭐ Viability Rated by Jimmy

Rumor Viability Comment: Competition has its Adverse Actions too

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