Apple Cuts Back on Samsung Component Orders For New iPhone 5 – Denies It’s Out Of Spite

According to Reuters – a “source with direct knowledge on the matter” has stated today that Samsung is experiencing a decrease in the amount of orders for RAM and Flash Memory chips for the new iPhone. The iPhone 5, which is expected to be unveiled next Wednesday, was originally thought to be using a significant amount of Samsung internals just like its predecessors. However the source has stated otherwise acknowledging that Apple has been trying to diversify its sourcing portfolio for critical components.

Initially, rumors circulated that hard feelings developed from the epic patent war between the two companies and were the main reason for this change. Yet the Reuters‘ source denies that suggestion altogether. Rather, the source insists that Apple has been looking to spread out its orders among many partners for some time now especially as Samsung and other partners become bigger rivals.

Interestingly enough, this move by Apple may actually end up being Samsung’s gain. The Korean giant’s own products are in need of the same components and are said to be making up for the decreased demands from Apple. This is no doubt due to the massive success of the Galaxy SIII, which earlier in the week eclipsed the 20 million sales mark, and the upcoming Galaxy Note II.

What are your thoughts on Apple’s moves? Is this purely a business decision or is bad blood, stemming from the multiple trials, the culprit for this decreasing partnership?

Reuters via The Verge

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kanoneyez 71 pts

And now, as Apple once again shots themselves in the foot, it will be interesting to see what sweatshop turns up being Apple's supplier. But actually, I'm glad that Apple is doing this. It will now make it even easier for Samsung to slam-dunk them.

JQuest81 89 pts

Bad blood.. They wanted to pull out before Samsung cut them off (provided they were thinking about it)... Kind of like how a boss says, "You're fired" but the employee responds, "You can't fire me! I quit!" lame analogy, I know.. haha.

 

Whatever the case, more parts to meet demand for the next Galaxy Device...

kanoneyez 71 pts

 JQuest81 I actually thought it was a very good analogy.