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Apple Drops Orders From Samsung and Looks to Others for iPhone 5 Memory Chips


Reuters reported last night that Apple has reduced its orders for memory chips from its rival/supplier, Samsung. It appears that Apple is attempting to diversify its supply chain options in order to protect its business. Given Apple’s recent court victory in its patent infringement suit against the South Korean firm, it comes as no surprise that Apple is looking to secure memory from other sources.

Some have believed that Samsung’s post trial statement which alleged that Apple’s victory would lead to “potentially higher prices” was an indicator that Samsung intended to make up its court losses by simply raising prices for components used in iPhones. However, to stir up a major dispute with a major supplier without a plan to keep the supply chain moving would be very much out of character for Apple CEO and mastermind, Tim Cook.

Sources indicate that Apple has not completely dropped Samsung as a Supplier, but is rather lowering the quantities that it is purchasing while looking to Toshiba, Elpida Memory, and SK Hynix to obtain NAND and DRAM chips.

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