Thanks for the Memory: Apple (AAPL) Limits Orders to Samsung for Upcoming iPhone
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Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
EPS Growth %: -18.0%
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Jeez, it was just one lawsuit.
According to reports out Friday, Apple (Nasdaq: AAPL) may be cutting out Samsung from its next iPhone handset. Reuters notes that the first batch of upcoming iPhones won't contain memory modules from the South Korean OEM giant, though it wasn't made clear whether the decision was tied strictly to manufacturing standards or for another reason. Overall, Apple's orders to Samsung have been ebbing, sources told Reuters
Taking the place of Samsung will be chips made from such firms as Elpida Memory, SK Hynix, and Toshiba.
Recently, Apple won a landmark patent case over Samsung, seeking to block import of several devices into the U.S. in the process. Despite the outcome, Samsung and Apple are still likely to work together given cost synergies between the two.
Apple is taking broader steps to diversify its supply chain, which is good for Apple as well as its consumers. If suppliers know that orders aren't guaranteed unless certain criteria are met, which includes quality and pricing, end results are likely to be better in the long run.
Shares of Apple are indicated for a higher open Friday.
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According to reports out Friday, Apple (Nasdaq: AAPL) may be cutting out Samsung from its next iPhone handset. Reuters notes that the first batch of upcoming iPhones won't contain memory modules from the South Korean OEM giant, though it wasn't made clear whether the decision was tied strictly to manufacturing standards or for another reason. Overall, Apple's orders to Samsung have been ebbing, sources told Reuters
Taking the place of Samsung will be chips made from such firms as Elpida Memory, SK Hynix, and Toshiba.
Recently, Apple won a landmark patent case over Samsung, seeking to block import of several devices into the U.S. in the process. Despite the outcome, Samsung and Apple are still likely to work together given cost synergies between the two.
Apple is taking broader steps to diversify its supply chain, which is good for Apple as well as its consumers. If suppliers know that orders aren't guaranteed unless certain criteria are met, which includes quality and pricing, end results are likely to be better in the long run.
Shares of Apple are indicated for a higher open Friday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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Get the facts right
John on Sep 9, 2012 11:23 AMMark as Spam | Reply to this comment
It's not Apple taking it's business away from Samsung.
It's Samsung refusing to supply Apple RAM chips and display panels for the first batch of the iPhone 5!
Big difference and this is going to hurt...coming just 3 days before the big launch.
This is why Apple is trying to put a spin on this and try to turn it the other way round to reduce the damage to its stock value when the markets reopen Monday.
Check with Bloomberg before you make more mistakes with this story!!!