Apple, Samsung Reportedly Make Peace, Agree to Chip Deal
David Curry | | Nov 17, 2014 12:18 PM EST |
They might be fierce rivals in court, but business relations between Samsung and Apple looks as strong as ever, according to a new rumor.
Apple and Samsung have been battling it out in court for more than two years now over the alleged copying of various iPhone and iPad designs and patented software technology.
In that time, Apple has removed Samsung as the main chip maker for the iPhone, replacing it with Taiwan Semiconductor Manufacturing (TSMC), which currently controls 60 percent of all manufacturing for the iPhone 6 and iPhone 6 Plus. Samsung controls the other 40 percent of manufacturing efforts.
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But a new report from The Korea Times claims that Apple and Samsung have made peace by signing a deal to make Samsung Apple's primary manufacturer.
This would go against claims earlier this year and in 2013, in which Apple said it would remove Samsung from its manufacturing partners. But if TSMC could not deliver the full amount, then that could mean more support from Samsung.
By 2016, Samsung should control 80 percent of the manufacturing effort, with TSMC controlling the other 20 percent. Samsung has more factories and staff to work on Apple's iOS chips at a lower price.
Samsung will also work closely with Apple on the development of the A9 processor, set to come with the next iPhone in 2015.
This is not the first time rumors have said Samsung is back on Apple's good books. Considering Samsung's manufacturing prowess appealing to Apple's slick organization on the manufacturing line.
Some smaller branches of Apple's manufacturing partners are apparently more cautious with deals, after sapphire crystal glass manufacturer GT Advanced Technologies over aggressive deals by Apple.
The size of Samsung means they do not have to worry about being burnt by these deals. GT Advanced could not fulfill the order size and Apple weren't willing to fund them anymore, but Samsung already ships hundreds of millions of units every year.
TagsA9 chip, chip manufacturers, TSMC
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