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Apple iPhone Chip: Future Apple iPhone’s to Have New Chip, No Thanks to Samsung

Apple iPhone Chip: The fact that Apple Inc. (NASDAQ:AAPL) has relied on Samsung as a supplier is no surprise to most. However, this relationship is just about coming to an end. For this reason, it is being reported that all future chips, including those to be used in the new iPhone 6, to be released in 2014, will be manufactured by Taiwan Semiconductor Manufacturing Co.

Apple Inc (AAPL)Apple Inc. (NASDAQ:AAPL) is actually the smart money’s second favorite publicly traded company but hedge funds have started dumping Apple in favor of a surprising financial stock (see which stock hedge funds are buying like crazy).

This information was first made available by Taiwan’s Economic Daily News, and later touched on by

The report, which Apple Inc. (NASDAQ:AAPL) has yet to comment on, claims that the Cupertino-based company will use an “”A7″ processor built on a smaller 20-nanometer process next year.

As noted above, one of the most interesting parts of this rumor is that the chip will be manufactured by Taiwan Semiconductor Manufacturing Co. as opposed to Samsung. Of course, this should not be much of a surprise since Apple and Samsung have become such big rivals.

As AppleInsider discusses, if this rumor is true it “suggests that Apple’s anticipated “iPhone 5S,” a next-generation handset expected to debut this year, will not feature a full-fledged next-generation “A7” processor.”

For quite some time, it has been thought that Apple Inc. (NASDAQ:AAPL) would move away from Samsung as a mobile chip manufacturing partner. For whatever reason, however, this has yet to happen. If this rumor is true, you can expect the relationship to come to an end within a year.

There was a time not so long ago when Apple was Samsung’s top customer. Now, the two are such big rivals, while also fighting it out in the court room, that this partnership no longer makes a lot of sense.

What do you think about this rumor? Will it benefit Apple Inc. (NASDAQ:AAPL) in the long run? Share your opinion in the comment section below.

Check back here for more updates on Apple iPhone Chip.

DISCLOSURE: I have no positions in any stock mentioned.

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