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Apple ups flash orders from Japan to reduce need for Samsung

updated 11:45 pm EDT, Wed September 21, 2011

Apple taps Elpida, Toshiba for more flash and RAM

Industry sources purported Wednesday night that Apple was increasing its orders for NAND flash memory and RAM from Japanese suppliers. The parts, which Digitimes suggests would respectively come from Toshiba and Elpida, would help it further reduce dependence on Samsung. Both Apple and Samsung are involved in reciprocal lawsuits, and Apple is likely eager to avoid any retaliation from Samsung through the supply chain.

Clues have already surfaced that Apple was outsourcing A6 and A7 chips to TSMC in another attempt to minimize Samsung's impact. It may be difficult to escape Samsung for displays given its being one of two companies believed to be supplying iPad 3 displays.

Both sides have said they intend to remain business partners for supplies, and for Apple it might be difficult to completely escape its Korean source. As the largest flash producer in the world with 30 percent of NAND flash and 40 percent of RAM, Samsung is one of the few companies that, individually, can keep up with much of Apple's demand. With multiple suppliers now able step in, though, Apple could have the freedom not just to avoid vulnerability to Samsung but to punish the company by depriving it of what's often its largest customer.

Samsung has tried countersuing Apple but has spent much of the past several weeks on the losing side with preliminary product bans already in effect.



By Electronista Staff
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Comments

  1. coffeetime

    Mac Enthusiast

    Joined: Nov 2006

    +10

    I think...

    Apple just realized iPhone parts supplying payments actually feeds Samsung's lawyers whom are suing Apple. Cutting the supply chain will run dry Samsung's lawyers budgets.

    Comment buried. Show
  1. imNat-imadouche

    Fresh-Faced Recruit

    Joined: Apr 2011

    -25

    Sorry Apple

    But you don't bite the hand that feeds you. I hope all your future products are flops and are plagued with problems.

    Tim Cook is an awesome Apple CEO and I hope Steve Balmer is fired from MS

  1. slapppy

    Fresh-Faced Recruit

    Joined: Mar 2008

    +9

    Worse to come

    Just wait and see. Samsung just lost their best customer.

  1. Paul Huang

    Dedicated MacNNer

    Joined: Sep 1999

    +5

    Apple could easily switch suppliers in the near fu

    And Samsung would be getting on its knees and beg for mercy.

  1. chefpastry

    Mac Enthusiast

    Joined: Nov 2005

    +3

    Samsung largest flash producer... For now.

    Apple buys so much of the stuff, they can have a huge influence on who will be the next to carry the mantra of "largest flash producer".

  1. Flying Meat

    Dedicated MacNNer

    Joined: Jan 2007

    +2

    Putting all the

    Apple vs. Samsung discussion aside for a moment, and looking at it strictly from a business perspective, Apple would have to be pretty brain dead not to forecast the possibility of supply issues from Samsung at some point.
    Doing nothing to assure continued supply through other vendors would be just plain stupid.

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    0

    Samsung backstabbed what

    was probably its best customer because of greed. I hope Apple is able to pay back Samsung in full for basically copycatting Apple products for its own benefit. Apple keeps getting burned by Android and it really needs to get out of that cycle. Hopefully Apple won't end up Android's B***** like it did with Microsoft Windows. Apple continually growing its economies of scale beyond competitor's reach is the only way that can be prevented in terms of hardware costs.

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