According to a recent report, Apple Inc. (NASDAQ:AAPL) is signing up with Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) for the production of future generation iPhone chips. Korea Economic Daily reports that the South Korean tech company will supply the iPhone maker with 14 nano A9 chips for the iPhone 6.
Apple’s Strained Relationship With Samsung
The report speculated, “Samsung Electronics had supplied the AP to Apple since 2007 but lost the contract to supply 20 nano AP A8 chips to Apple to Taiwan’s TSMC last year when it was engaged in patent disputes with Apple Inc. (NASDAQ:AAPL). Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) developed state-of-the-art 14 nano models ahead of its rival TSMC, regaining the order from Apple.”
Industry sources claim that Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) signed an agreement with Apple Inc. (NASDAQ:AAPL) to supply them with the next generation of AP chips which will be produced in 2015. This is interesting considering the strained relations between the competing companies. Apple even stopped using Samsung chips in their products in the latter half of this past year.
Apple and Samsung: Love/Hate Relationship
CNET added, “Apple reportedly tried to secure exclusive access to TSMC smartphone chips by making an investment offer to the custom chipmaker in excess of $1 billion. The cash would have assured Apple that production would have been reserved for its products, but TSMC rejected the bid — along with a similar one from Qualcomm, Bloomberg reported last month.”
This report does not mean that the war between Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is over. As long as the iPhone and Galaxy S phones remain on the market, there will always serious competition between the tech giants. Last year, Samsung lost a major patent battle to Apple Inc. (NASDAQ:AAPL) and was forced to pay up a huge sum to the Cupertino-based company. That battle will continue next year in court. In the meantime, both companies are filing lawsuits against each other throughout the world. It’s apparent that both companies want to be the leader in smartphones and mobile technology.