Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is gearing up to manufacture mobile AP integrated chips during the fourth quarter of the year. Samsung has played a big role in the mobile AP chip market, however they steered clear from producing integrated chips because of license issues with QUALCOMM, Inc. (NASDAQ:QCOM).
Korean Economic Daily reports, "If Samsung Electronics makes entry into the integrated chip market, it will likely to face a head-on competition with the market's No. 1 and No. 2 players, namely Qualcomm and MediaTek. Samsung's decision to enter the integrated chip market comes after the demand for such chips increases at a rapid pace, driven by that from emerging markets, mostly notably China. Another factor is that it hopes to minimize the damage caused by Apple Inc. (NASDAQ:AAPL) shunning Samsung for iPhone 6 AP."
One high ranking official for Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) added that the market for the mobile AP integrated chip is expanding fast. He said, "The mobile AP integrated chip market is expanding steadily. Given that this market is growing fast, we have no reason not to produce integrated chips."
Apple Severing Ties with Android
Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) have pretty much severed ties as both companies want to take the lead in the mobile market. The iPhone is a key seller for Apple and Samsung's Galaxy S phones are a key competitor. This isn't the only thing Apple Inc. (NASDAQ:AAPL) is doing to completely sever ties with Android related companies.
Apple Maps Flopped
Last year, the Cupertino-based company introduced their own Apple Inc. (NASDAQ:AAPL) Maps application with iPhone 5 to compete with the perennially popular Google Maps. Unfortunately, their maps applications flopped and the company had to revert back to using Google Maps.
The highly anticipated iPhone 5S will most likely arrive sometime during the late summer or early fall. The iPhone 6 will likely arrive sometime next year. The latter phone is predicted to be a significant upgrade.