Apple Predicted to Expand Lead in Global Semiconductor Purchases in 2012

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Original poster
Apr 12, 2001
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Research firm IHS iSuppli today released the results of a new study tracking global semiconductor sales in 2012, predicting that Apple will expand its lead on the strength of 15% growth in the face of a stagnant market. Apple first topped the list in 2010 after quickly rising from third place in 2009 and sixth place in 2008.
Apple is maintaining its lead in semiconductor purchasing because of continuing strong demand for its products, combined with the company's capability to maintain beneficial relationships with more than 150 suppliers that provide components or offer manufacturing and assembly services.

But aside from maintaining its global dominance in chip purchasing, Apple is also outgrowing the other OEMs and making gains in the various regions of the world. For Apple, this translates into competitive advantages when it comes to manufacturing electronic products.
The report notes that Apple's increasingly dominant market position, which is estimated to see nearly double the revenue of second-place Samsung this year, gives Apple significant market advantages in terms of controlling pricing, availability, and product roadmaps.

Apple is predicted to continue expanding its lead in 2013, with IHS iSuppli's estimates pegging Apple at 12.3% growth next year, the highest of any top-ten global customer.

Article Link: Apple Predicted to Expand Lead in Global Semiconductor Purchases in 2012
 

Rocketman

macrumors 603
Given that Apple is by far larger and by far growing faster by this measure is interesting, but another factor is the average cost per CPU has been dropping as the mix shifts from Intel based Macs to custom silicon in iPhones and iPads. So the unit count is huge as well.

They are #1 and pulling away because they are developing entire new markets, not just fighting over market share scraps. Their efforts to capitalize suppliers gives them an unbeatable competitive advantage on first mover, first access, full order book fulfillment and net cost. That $110B cash asset is being put to great use as collateral for those investments. The cost savings and profit increases add to it. Positive feedback loop.

Rocketman
 
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thewitt

macrumors 68020
Sep 13, 2011
2,102
1,523
Apple is not a low ball customer. They demand high quality and delivery performance and they are willing to pay for it. This is a good thing for everyone - supplier and consumer.
 

Piggie

macrumors G3
Feb 23, 2010
8,469
2,857
What do they mean Buying, and how are they comparing Samsung to Apple here?

I mean, if Samsung actually makes things for real, whereas Apple buys thing from other companies, like Samsung (who actually create the physical items)

How can that compare?

Like saying Apple Milk and Samsung Milk.

Apple are buying more milk than Samsung, but forgetting that Samsung actually own their own cows and produce milk for themselves, so of course they won't be buying much milk as they produce the stuff in the 1st place.
 

JAT

macrumors 603
Dec 31, 2001
6,473
124
Mpls, MN
What do they mean Buying, and how are they comparing Samsung to Apple here?

I mean, if Samsung actually makes things for real, whereas Apple buys thing from other companies, like Samsung (who actually create the physical items)

How can that compare?

Like saying Apple Milk and Samsung Milk.

Apple are buying more milk than Samsung, but forgetting that Samsung actually own their own cows and produce milk for themselves, so of course they won't be buying much milk as they produce the stuff in the 1st place.
Samsung to Samsung sales should be included if they've done their research properly. It would be a sale from one Samsung entity to another.
 

Piggie

macrumors G3
Feb 23, 2010
8,469
2,857
Samsung to Samsung sales should be included if they've done their research properly. It would be a sale from one Samsung entity to another.
I struggle to believe this.

So Apple buys more than Samsung does, and if they are taking in Samsung to Samsung purchases (god knows how you would work that out)

They all the parts Samsung would need to buy (get) from Samsung, to make, Televisions, Tablets, Mobile Phones, Camera's, Laser Printers, MP3 Players, Hard Drives, Solid state drives.
Then we have the electronic components that go into Fridges, Microwaves, Cookers etc etc etc etc............

Somehow I feel Apple are a tiny insect compared to Samsung if you worked all that out.
 

JAT

macrumors 603
Dec 31, 2001
6,473
124
Mpls, MN
I struggle to believe this.

So Apple buys more than Samsung does, and if they are taking in Samsung to Samsung purchases (god knows how you would work that out)

They all the parts Samsung would need to buy (get) from Samsung, to make, Televisions, Tablets, Mobile Phones, Camera's, Laser Printers, MP3 Players, Hard Drives, Solid state drives.
Then we have the electronic components that go into Fridges, Microwaves, Cookers etc etc etc etc............

Somehow I feel Apple are a tiny insect compared to Samsung if you worked all that out.
Could be. Also, it's measured by revenue. Samsung/Sony are two of the largest semi-conductor makers on the planet, plus are partners. They may charge less to themselves.
 

Glassed Silver

macrumors 68020
Mar 10, 2007
2,096
2,559
Kassel, Germany
Given that Apple is by far larger and by far growing faster by this measure is interesting, but another factor is the average cost per CPU has been dropping as the mix shifts from Intel based Macs to custom silicon in iPhones and iPads. So the unit count is huge as well.

They are #1 and pulling away because they are developing entire new markets, not just fighting over market share scraps. Their efforts to capitalize suppliers gives them an unbeatable competitive advantage on first mover, first access, full order book fulfillment and net cost. That $110B cash asset is being put to great use as collateral for those investments. The cost savings and profit increases add to it. Positive feedback loop.

Rocketman
That's exactly it.

I like how Apple puts it's wealth to good use in this scale and profits from it.
I'm sure they will invest heavily in many more great advancements in then near future and one can only be excited and watch them rule customer satisfaction in return. :apple:

Glassed Silver:mac
 

Rocketman

macrumors 603
many more great advancements in the near future
Apple is building infrastructure as fast as governments will let them. HQ, servers, factories, retail stores.

Apple is deploying hardware in a "bleeding edge" fashion on displays, mobile CPU, storage, design and integration, software, software diversity and 3rd party involvement. They are choosing where to push the envelope and not only investing in the R&D and product, but investing in the suppliers themselves to lean forward hard. They are facilitating every network possible since that is not their market segment. They work with carriers to give them more customers than they ever imagined or hoped, and make them so sticky there is no term for it, because it has never happened before.

Loyalty matters in commerce. Shocker! BTW it's called an annuity. c.1671 AD

Rocketman

More memory and mobile GPU for God's sake!
 
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dba7dba

macrumors 6502
Oct 16, 2008
421
1
Near Apple
Apple is building infrastructure as fast as governments will let them. HQ, servers, factories, retail stores.

Apple is deploying hardware in a "bleeding edge" fashion on displays, mobile CPU, storage, design and integration, software, software diversity and 3rd party involvement. They are choosing where to push the envelope and not only investing in the R&D and product, but investing in the suppliers themselves to lean forward hard. They are facilitating every network possible since that is not their market segment. They work with carriers to give them more customers than they ever imagined or hoped, and make them so sticky there is no term for it, because it has never happened before.

Loyalty matters in commerce. Shocker! BTW it's called an annuity. c.1671 AD

Rocketman

More memory and mobile GPU for God's sake!
No offense but who cares about HQ/retail store?

And Apple is building factories? That is news to me. Did you by any chance read an article (MSNBC I think) which said Apple was building its A4/A5 chips in a factory in Texas, which is wrong. The factory the article mentioned is actually a Samsung owned/operated, which cost a few billion dollars to build. Apple is just buying the A4/A5 chips from Samsung.

And I read somewhere Samsung's R&D per year is about 30-40 billion $.
I read that somewhere while following the law suit story...
 

ixodes

macrumors 601
Jan 11, 2012
4,429
2
Pacific Coast, USA
Only Apple would get attention over something so obvious.

You've got to give them credit.

About the only thing that doesn't draw headlines is how many times per day Apple employees burp.
 
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