MacRumors

macrumors bot
Original poster
Apr 12, 2001
53,087
14,845



isuppli_semiconductor_oems.jpg

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 surge to leadership in semiconductor spending in 2010 was driven by the overwhelming success of its wireless products, namely the iPhone and the iPad," said Wenlie Ye, Analyst for IHS. "These products consume enormous quantities of NAND flash memory, which is also found in the Apple iPod. Because of this, Apple in 2010 was the world's No. 1 purchaser of NAND flash."
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
 

Consultant

macrumors G5
Jun 27, 2007
13,313
33
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.
 
Comment

trilla12

macrumors newbie
Jun 21, 2008
19
0
Wow... like i said last week, looks like it's definitely time to put some money into TSM Taiwan Semiconductor Manufacturing TSMC
 
Comment

chrmjenkins

macrumors 603
Oct 29, 2007
5,322
154
CA
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.
 
Comment

talkingfuture

macrumors 65816
Dec 4, 2008
1,216
0
The back of beyond.
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.
 
Comment

Mackan

macrumors 65816
Sep 16, 2007
1,379
56
Wonder what the world would look like if it's all an Apple ecosystem...
 
Comment

gnasher729

Suspended
Nov 25, 2005
17,980
5,550
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? )

Agree. Hopefully Apple can just drop Samsung.

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.
 
Comment

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
Agree. Hopefully Apple can just drop Samsung.

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.
 
Comment

Skika

macrumors 68030
Mar 11, 2009
2,988
1,196
Do the chips in Macbook Airs also count in this? Since they are somekind of flash?
 
Comment

cvaldes

macrumors 68040
Dec 14, 2006
3,237
0
somewhere else
Do the chips in Macbook Airs also count in this? Since they are somekind of flash?
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.
 
Comment

Popeye206

macrumors 68040
Sep 6, 2007
3,148
836
NE PA USA
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.
 
Comment

cvaldes

macrumors 68040
Dec 14, 2006
3,237
0
somewhere else
You're talking about the storage... Silicon is the chip or processors. This is what they are referring to.
The MacBook Air uses NAND flash memory -- a silicon semiconductor -- for storage, just like the iPhone, iPad, iPods (except classic), and Apple TV.
 
Comment

Woozman04

macrumors newbie
Mar 16, 2011
5
0
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
 
Comment

Piggie

macrumors G3
Feb 23, 2010
8,723
3,297
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.
 
Last edited:
Comment

Popeye206

macrumors 68040
Sep 6, 2007
3,148
836
NE PA USA
Is this just because apart from a pretty case and the OS Apple don't make anything?

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

Kid 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.

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.
 
Comment

Popeye206

macrumors 68040
Sep 6, 2007
3,148
836
NE PA USA
The MacBook Air uses NAND flash memory -- a silicon semiconductor -- for storage, just like the iPhone, iPad, iPods (except classic), and Apple TV.

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.
 
Comment
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.