Apple Reportedly Relying More Heavily on Samsung for iPhone 6 and Apple Watch Components

MacRumors · Nov 26, 2014

Industry sources indicate Apple is planning to lean heavily on Samsung as a component supplier for both new iPhone 6 builds and the upcoming Apple Watch, reports BusinessKorea (via G for Games). If true, this would be a marked change from Apple's reported goal of lessening its reliance on Samsung by seeking alternative suppliers for critical hardware components.

According to the report, Apple is looking to Samsung to supply RAM, NAND flash storage, and batteries for future iPhone 6 production, supplementing or replacing current suppliers for those components.

NAND flash has been a particular area of concern for Apple according to recent news reports, with the company's decision to use cheaper and slower TLC (triple-level cell) flash memory for larger-capacity iPhone 6 and 6 Plus models being blamed for sporadic crashing issues. Apple has reportedly moved to stop the use of its current TLC NAND flash chips and supposedly is back at the negotiating table with the South Korean supplier.

At first, Apple discussed with Samsung about the supply of NAND flash for the iPhone 6. Due to problems with prices, Toshiba's TLC NAND flash was used in the 128GB models, and components made by SK Hynix, Toshiba, and SanDisk were used in the 64GB models.

However, as overseas IT news sites reported functional defects in the 128GB models, Apple is said to be considering whether or not to replace the TLC NAND flash made by Toshiba with Samsung's own TLC NAND flash. If Apple and Samsung strike a deal, Samsung will supply both DRAM and NAND flash to the iPhone 6.

Beyond the iPhone 6, the same Korean industry sources also claim Samsung will supply Apple with application processors for the Apple Watch, which is slated to debut in early 2015.

Apple touts the Apple Watch as using a new "S1" module for the internals that seals nearly all of the internal components into a single resin-filled package for durability. The individual components of the S1 are undoubtedly being provided by several different manufacturers, but according to today's report the main application processor portion will be coming from Samsung.

Article Link: Apple Reportedly Relying More Heavily on Samsung for iPhone 6 and Apple Watch Components

Patriot24 · Nov 26, 2014

Samsung has been one of the best supply partners Apple has ever had and will continue to be. After all of the back-and-forth about Samsung vs. Apple, business is business. Both companies profit greatly from this partnership.

nt5672 · Nov 26, 2014

My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.

teslo · Nov 26, 2014

nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.

my question for you is: is that a real question?

jayducharme · Nov 26, 2014

"Keep your enemies closer."

Now that Samsung's own phone market is tanking, they might be relying more than ever on Apple to help pay the bills.

sualpine · Nov 26, 2014

nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.

Show me a like for like comparison where Samsung is cheaper.

nt5672 · Nov 26, 2014

teslo said:
my question for you is, is that a real question?

It was rhetorical, but makes the point, none-the-less. It devalues the Apple brand in the eyes of many non-critical users (almost everybody these days).

BruiserB · Nov 26, 2014

nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.

Sounds more like a question for yourself than a question for Apple. Why don't you?

nt5672 · Nov 26, 2014

sualpine said:
Show me a like for like comparison where Samsung is cheaper.

Most people born in the last 20 years don't care about reality, its all about perception and Hollywood.

teslo · Nov 26, 2014

nt5672 said:
It was rhetorical, but makes the point, none-the-less. It devalues the Apple brand in the eyes of many non-critical users (almost everybody these days).

show me that more than 1 out of 50,000 apple users know Samsung has anything at all to do with apple products and i'll give you a pass on that one.

nia820 · Nov 26, 2014

nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.

Well if you don't mind using android then go ahead. But if you like the iOS experience then stick with iPhone.

happywaiman · Nov 26, 2014

A Korean newspaper on the time where the prodigal son is preparing $ to pay the tax when his dad is going to expire?

Curiouser and curiouser

nt5672 · Nov 26, 2014

teslo said:
show me that more than 1 out of 50,000 apple users know Samsung has anything at all to do with apple products and i'll give you a pass on that one.

Right up to the point that, as a last ditch effort, the Samsung Cell Phone division makes the commercial, "There is no real difference between us and Apple? We both use the same technology." It's Samsung's choice that no one knows, not Apple's, so its dangerous.

ucantgetridofme · Nov 26, 2014

nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.

Because Apple fans are love Apple

69Mustang · Nov 26, 2014

Not even sure why this would surprise anyone. For all the vitriol surrounding Samsung and their devices, has there ever been a question of their abilities as a parts supplier? As long as the final product is reliable, who really cares if the internals come from Samsung. Obviously Apple doesn't, so why should anyone else?

ucantgetridofme · Nov 26, 2014

teslo said:
show me that more than 1 out of 50,000 apple users know Samsung has anything at all to do with apple products and i'll give you a pass on that one.

Samsung is all Apple fans can think about. They're brought up in every article and thread even when it has nothing to do with Samsung. Samsung is so in your heads it's not even funny.

cashxx · Nov 26, 2014

Maybe they made some type of agreement, I haven't seen a Samsung commercial in a while that is bashing Apple. Been Microsoft with the Apple bashing commercials lately.

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nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.

Then you get stuck with Android! Have fun with that!

apolloa · Nov 26, 2014

jayducharme said:
"Keep your enemies closer."

Now that Samsung's own phone market is tanking, they might be relying more than ever on Apple to help pay the bills.

I love posts like this, they totally ignore the fact if Samsung stopped supplying Apple then Apple would go down too. Fact is no one can match Samsung for supplies otherwise Apple would be using them.

thadoggfather · Nov 26, 2014

So I suppose Samsung can make TLC flash that doesn't act all screwy?

Rogifan · Nov 26, 2014

I know this is a rumors site but it always amazes me how any rumor posted here gets treated as fact by people in the comments sections. The WSJ recently reported that Galaxy S5 sales were 40% below estimates and organizational changes were coming at Samsung Electronics. It wouldn't surprise me at all if Samsung or someone looking to pump up the stock would put out a rumor like this.

Hattig · Nov 26, 2014

I'm guessing the S1 SoC will be made on Samsung's 20nm process then. It should be fairly small and low power.

Possibly a lower clocked single-core Cyclone core (as in the A8) with a single core GPU (as opposed to the quad-core A8, octo-core A8X), lots of removed functionalities (video encoder, L3 cache, etc).

They could use the Swift core instead, or a vanilla ARM core (A7), but Apple just isn't the company to do that. There's no need for a 64-bit watch, but why not!

I guess we'll find out next year.

gnasher729 · Nov 26, 2014

nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.

Because the parts for Apple and the devices are made by different parts of the Samsung company. With your opinion about Samsung devices you seem to be quite on your own, considering that sales of Samsung high end devices have fallen off a cliff.

winston1236 · Nov 26, 2014

nt5672 said:
My question For Apple is, if Samsung is the best suppliers of Apple parts, then why don't I just buy Samsung products directly? They are cheaper and have less overhead.

Samsung builds high quality hardware. They have manufacturing capabilities spanning a ton of industries and it makes sense to have them build for you.

Manufacturing doesn't equal designing the product for Apple. Just as an iPhone isn't a Foxconn phone.

MacLC · Nov 26, 2014

sualpine said:
Show me a like for like comparison where Samsung is cheaper.

Nailed it!

Apple continually relying on rivals for supplies will eventually be a deal with the devil. I have no sympathy for the Samsung, Mick Jagger.

SixtyK · Nov 26, 2014

Does anybody still believe these two are bitter rivals?

Apple Reportedly Relying More Heavily on Samsung for iPhone 6 and Apple Watch Components

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