Apple Tops List of Largest Semiconductor Buyers in 2010

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jun 8, 2011.

  1. macrumors bot

    MacRumors

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    Top 10 OEM Semiconductor Buyers
    (Ranking by Revenue in Billions of U.S. Dollars)

    According to a new research report from IHS iSuppli, Apple became the world's largest semiconductor buyer among original equipment manufacturers (OEMs) in 2010, leaping past HP and Samsung to comfortably grab the top spot with $17.5 billion in spending. Apple's surge has seen it rise from third place in 2009 and sixth place in 2008.
    Apple's lead over second-place HP, which stood at $2.3 billion in 2010, is expected to balloon to over $7.5 billion in 2011 as Apple expands its purchases to over $22 billion while other vendors remain relatively stagnant.

    The report points out the marked differences between Apple's and HP's businesses, citing data showing that 61% of Apple's semiconductor spending in 2010 was on wireless products while 82% of HPs spending was on traditional computer products. That difference in focus, combined with the exploding smartphone and tablet market, has been driving Apple's run up the charts.

    Apple is also cited for its ability to create an "ecosystem" of its products, with the company's tie-ins across devices leading consumers to stick with Apple for each new computer and mobile device purchase. This contrasts with the traditional PC business that offers no such ecosystem, thus leading to considerably lower brand loyalty across the range of devices and more fragmentation in purchasing patterns.

    Article Link: Apple Tops List of Largest Semiconductor Buyers in 2010
     
  2. macrumors G5

    Consultant

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    #2
    Seems like Apple is leading the post-pc world, one step at a time.

    The other companies are basically flatlined or suffering from negative growth, even with their wanna bee products.
     
  3. macrumors newbie

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    Jun 21, 2008
    #3
    Wow... like i said last week, looks like it's definitely time to put some money into TSM Taiwan Semiconductor Manufacturing TSMC
     
  4. macrumors 603

    chrmjenkins

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    #4
    Apple continues to rise and take over just about every metric we have for a tech company.

    I hope other American companies take note. Apple is a company that takes pain to, and successfully defines itself through its product offerings and philosophy. That's what's necessary to differentiate yourself from many other companies in a global economy.
     
  5. macrumors 65816

    talkingfuture

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    #5
    Thats quite an impressive margin over the rest of the industry. I would have thought Sony would be further up that list with all the products that they make that use Semiconductors.
     
  6. macrumors G4

    *LTD*

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    #6
    Wouldn't be good for anyone to lose Apple as a customer . . .
     
  7. macrumors 65816

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    #7
    Wonder what the world would look like if it's all an Apple ecosystem...
     
  8. macrumors G5

    Consultant

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    #8
    Agree. Hopefully Apple can just drop Samsung.
     
  9. macrumors G5

    gnasher729

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    #9
    Obvious questions: 1. What counts as "semiconductor"? Does it include LCD screens? Probably includes SSD, but not HD? 2. Some of the companies are also producers of semiconductors. Are numbers for using their own products at a reasonable market price added in? (For example, if Apple buys $1bn worth of Samsung flash memory, and Samsung uses the same amount of Samsung flash memory itself, is the second $1bn included in Samsung's numbers? )

    There's no reason for that at all. As long as the court case between Apple and Samsung doesn't affect price and quality of Samsung parts negatively, there is no reason for that.
     
  10. Guest

    toddybody

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    #10
    Those numbers make total sense when youre taking Apple's line up...

    I'd think iPhone/iPad sales have to make up a large majority of those numbers.

    Cheers :apple:
     
  11. macrumors G4

    *LTD*

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    Apple has the power to do that. They're a big customer on the supply side and they can barely keep up with product demand. The question is who will fill the gap. I'm not sure who the candidates might be.

    I don't really see Samsung as a problem on the supply side. Their mobile division needs to be kept in check, but that'll sort itself out in time. Apple makes money for Samsung and in turn Apple gets a reliable supplier. The mobile issues have nothing to do with it, and it would be pretty stupid for those issues to have any bearing whatsoever on the lucrative supply business they've got going.

    But you're right, these days Apple has the power to direct the course of their own destiny with a reasonable chance of success.
     
  12. macrumors 68020

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    #12
    Do the chips in Macbook Airs also count in this? Since they are somekind of flash?
     
  13. macrumors 68000

    NebulaClash

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    #13
    A lot more efficient.
     
  14. macrumors 68040

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    #14
    It includes chips in all Apple products, whether they be Macs, iDevices, or other things like Airport base stations or Apple-branded AC adapters.

    Basically, if it has an Apple logo and it has parts made of silicon, it counts.
     
  15. macrumors 68000

    ten-oak-druid

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    #15
    It is good to see more silicon put to a good use.
     
  16. macrumors 68030

    Popeye206

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    #16
    I've seen a couple other good uses too! :eek: :cool:
     
  17. macrumors 68030

    Popeye206

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    #17
    Apple really has a trifecta of things going for them now that makes it very hard for another to compete. Great products, great support and the eco system that brings customers back for more.

    Yes... there will always be individual offerings with better spec lists, or some better features, but when put in the total, Apple shines.

    Looking forward to all the new toys coming out this year.
     
  18. macrumors 68030

    Popeye206

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    #18
    You're talking about the storage... Silicon is the chip or processors. This is what they are referring to.
     
  19. macrumors 68040

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    #19
    The MacBook Air uses NAND flash memory -- a silicon semiconductor -- for storage, just like the iPhone, iPad, iPods (except classic), and Apple TV.
     
  20. macrumors 65816

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    #20
    So all flash memory counts as a semiconductor?

    Processors too?
     
  21. macrumors 6502a

    franswa za

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    #21
    headline post

    i serially smell jim jones kool-aid

    SSSD
     
  22. macrumors newbie

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    Mar 16, 2011
    #22
    According to this Chart

    So according to this chart Apple has already bought $5billion more on semiconductors halfway through 2011 than it had through all of 2010? Something fishy here
     
  23. Piggie, Jun 8, 2011
    Last edited: Jun 8, 2011

    macrumors 604

    Piggie

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    Feb 23, 2010
    #23
    Is this just because apart from a pretty case and the OS Apple don't make anything?

    So Samsung could bring out there own device and have an almost zero purchase cost as they would make most of the internals themselves.

    Kind of makes this buying list a bit pointless.
    Would think it would be much better to make your own product and not have to buy it all in from others.
     
  24. macrumors 68030

    Popeye206

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    #24
    Yeah... only the Design and the OS make the Apple products different. Simple things.

    Samsung does do their own... and they too buy parts from others. Chip and parts manufacturing is very specialized and no one makes it all. It's just not feasible given the number of parts and specialized areas.

    But the two things you mention... design and OS... those are no small chunks of cheese. Obviously it's not that simple.
     
  25. macrumors 68030

    Popeye206

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    #25
    I'm dig'n what you're saying now.... :) It was a little confusing. I assumed just processors, but they are counting NAND memory too.
     

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