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(Image Source: Cult of Mac)
BY A.J. Feather
Apple is trying to reduce its dependence on Samsung by finding a new partner to start
making some of its smartphone and tablet chips. The Wall Street Journal broke the story Friday
writing Apple signed a deal with Taiwan Semiconductor Manufacturing Co. But it's not easy to find
a Samsung replacement. The Journal reports, "The process had been beset by glitches preventing
the chips from meeting Apple's speed and power standards."
Apple's reason for concern is evident — Samsung is Apple's biggest competitor in the Smartphone
market. As of the first quarter, Samsung holds 30.8 percent and Apple had 18.2 percent of
the smartphone market respectively. Their next-closest competitor is LG with just 4.8
percent market share. (via Engadget) And although Apple was uncomfortable with
its dependence on Samsung, Samsung certainly doesn't want to lose the business. MacRumors
reports "... an estimated $10 billion of Samsung's reported $59 billion in component sales ..." comes
from Apple. In addition to the companies' rivalry in the
mobile device market, they have been engaged in a war over mobile device design patents
for several years now. Just this month, that battle resulted in the
United States International Trade Commission issuing a ban on several older Apple mobile
devices, including third and fourth generation iPhones. (via The New York Times)
And last summer, Samsung was required to pay apple more than a billion dollars in damages
to Apple over patents. Though a federal judge ruled against the permanent ban Apple
was seeking on eight Samsung smartphones last December. (via Bloomberg)
The Wall Street Journal reports the new chips from Taiwan Semiconductor Manufacturing Co.
could potentially be smaller and more efficient thanks to advanced "20-nanometer" technology.
The chips are set to enter mass production in early 2014.