Apple has opted for a new partner. The famous company decided to work with Samsung, once again. Even though Apple and Samsung are rivals and they actually took their battle in court, too, they know when to work together.
It is a well-known fact that Samsung has supplied the chips for Apple products for years. However, the tech giant claimed earlier this summer that they will move their chip making business somewhere else. But, it seems that Apple has changed its mind now and plans on continuing the partnership with the famous tech company.
So, Samsung will make the majority of the chips used for iPhones and iPads, starting with 2016. This is a huge win for Samsung and a secure business for Apple. Under the terms of the new deal, Samsung will be responsible with making more than 80 percent of the Apple iPhone and iPad chips. It has been reported that the deal is worth billions, so it will bring huge profits for Samsung.
As previously mentioned, earlier this year Apple tried to move away from Samsung to a company known as Taiwan Semiconductor Manufacturing Co., which was set to create the chips for the iPhone and the iPad. When Apple made this move, it left a part of the business at Samsung, but a very small one compared to what the company previously had. As expected, this impacted the profits that Samsung had in 2014.
Why needs Apple someone to create its chips? Well, the famous company designs them, but it needs someone to manufacture them. Apple has always worked with Samsung on this matter and it seems that the creator of the Galaxy S 5 is the only one which can offer Apple the quality is desires.
Samsung has its own battle on the smartphone market nowadays. The popular company will have to handle a powerful competition. So, Android manufacturers such as Lenovo or Xiaomi manage to bring high-end devices at half of the cost of Samsung smartphone lineup. This might impact the sales and the profits of the company. So, Samsung needs to find a way to make sure that its smartphones stand apart from any other Android devices on the market.