New iPhone 5 to use less hardware produced by its Android competitors

The front panel is removed from the iPhone 4 during iFixit's teardown of the phone in San Luis Obispo

Apple’s main supplier for hardware has been Samsung, which is also their main competitor, but now things might change with the new iPhone 5. It seems like Apple is going to diversify its suppliers in a struggle to stop helping its main rival, Samsung.

Samsung has been the main supplier for processors, displays, DRAM chips, NAND memory chips and batteries, though Apple began reducing orders for these products as the new iPhone 5 release date gets closer and they signed contracts with other suppliers, according to Reuters.

The iPhone 5 will now feature DRAM and NAND memory chips produced by Toshiba, Elpida Memory and SK Hynix. For batteries, Apple dropped Samsung entirely, in favor of Amperex TEchnology and Panasonic. The iPhone 5 display will be produced by LG, after Sharp failed to begin production on time.

Apple will continue to use Samsung processors exclusively for the iPhone and iPad, though we can expect to diversify on this area too in the future.

Unexpectedly, Samsung shares rose 4.5% on Friday, despite their downfall in component sales. SK Hynix and Toshiba shares also rose by 6.2 percent and 4.3 percent, respectively.

Apple and Samsung became the biggest rivals, after the Korean company started producing Android devices. It’s also the only company that managed to compete with Apple on the smartphone market and also defeated them in terms of sales. They have been suing each other due to patent issues and struggle to ban each others devices in more than 10 countries.

Now the iPhone 5 release date is very close, as Apple announced an event on September 12, and Samsung is preparing to sue the Cupertino based company for 4G LTE patents, if the new device is going to use these chips. And they most likely will, because the market highly demands it.

Once the iPhone 5 gets released, they will begin the fight between it and the Samsung Galaxy S3, which is their biggest competitor at the moment.

  • Jinn

    p, li { white-space: pre-wrap; }

    It’s not Apple taking it’s business away from Samsung.

    It’s Samsung refusing to supply Apple RAM chips and display panels for the first batch of the iPhone 5!

    Big difference and this is going to hurt…coming just 3 days before the big launch.

    This is why Apple is trying to put a spin on this and try to turn it the other way round to reduce the damage to its stock value when the markets reopen Monday.

    Check with Bloomberg before you make more mistakes with this story!!!

    • http://www.alexdumitru.com Alex Dumitru

      As you can see, it’s all rumors. There are rumors about each side withdrawing its business from the other side. So currently you can’t tell which one is right.