The fact that Apple Inc. (NASDAQ:AAPL) and Samsung are constantly discussed in the same sentence, at least as far as the smartphone market is concerned, should not be a surprise to anybody at this point. We have talked about this in the past, such as in this piece, and there are plenty more battles to be had between the two tech giants in the months to come.
Although Apple would like nothing more than to pull away from Samsung in the smartphone space, it doesn’t appear that Cupertino will be doing so at any point in the near future. Making things even more complicated is the fact that Apple Inc. (NASDAQ:AAPL) has a partnership with Samsung.
While many people expect this partnership to come to an end sooner rather than later, the Korea Economic Daily recently published a story that contradicts this. It appears that Apple and Samsung will be working together into the future.
Here is a brief excerpt from the piece:
“Samsung Electronics will supply mobile application processor (AP) to Apple Inc. from 2015. The mobile AP is a brain of Apple’s iPhone. Samsung Electronics will supply 14 nano A9 chips that will be used for Apple’s iPhone 7.”
For many, this is very confusing. The Apple iPhone is one of the most well known, best selling smartphones in the world. That being said, Cupertino has not pulled away from the competition and Samsung is its biggest rival. With this in mind, why would Apple Inc. (NASDAQ:AAPL) turn to this company for A9 chips in the future?
Here is some more from the piece, explaining a bit of what has happened in the past:
“Samsung Electronics had supplied the AP to Apple since 2007 but lost the contract to supply 20 nano AP A8 chips to Apple to Taiwan’s TSMC last year when it was engaged in patent disputes with Apple. Samsung Electronics developed state-of-the-art 14 nano models ahead of its rival TSMC, regaining the order from Apple.”
As you can see, Apple and Samsung briefly parted ways but for one reason or the next they are back together at this point.
It goes without saying that Apple Inc. (NASDAQ:AAPL) is going to do business with the company that gives it the best chance of success. Obviously, the entire team at Cupertino feels that a deal with Samsung is a must at this time.