Does Apple Use Samsung Parts
It is suggested that apple uses 82% of its parts by purchasing from Samsung. Samsung makes various parts for iPhone including an OLED display, Nand flash, and Dram chips. Samsung is the only company capable of making high-quality parts for apple.
Samsung is one of Apples largest processor suppliers, and the companies enjoy close relations. Samsung is also one of the largest components suppliers in the world, and Samsung makes lots of money from their various component units. Samsung Electronics, which is the entity that we will be calling Samsung for the rest of this article, is more than just the Asian counterpart of Apple Inc. (AAPL). Through its numerous subsidiaries, Samsung has been selling parts to Apples own alleged unlicensed mobile devices, at an annual rate in excess of $8 billion.
| Does Apple Use Samsung Parts | |
| By Samsung | The iPhone’s OLED screen, NAND memory, and DRAM chips were all produced by Samsung |
| Team iOS & A16 | The team building iOS and the team designing the A16 are not separated intellectually. |
| According to Wall Street Journal | Samsung is likely to make $4 billion more selling parts to Apple than Samsung does selling its own latest flagships. |
Samsung may be beating Apple Inc. (AAPL) on the market share for phones, but Apple is happy selling less phones than Samsung, considering it means earning nearly $400 per unit. In fact, The Wall Street Journal reports that an analyst believes that Samsung is likely to make $4 billion more selling parts to Apple than Samsung does selling its own latest flagships. If you think that you should judge a company on how much it sells, not on aggregated market opinions, then Apple Inc. (AAPL) is the second-largest electronics multinational in the world, trailing only Samsung.
Samsung is the obvious choice for Apple, purely because Samsung is (and continues to be) the largest OLED panel maker in the world, while LG is a distant second. Since Apple made the move to OLED panels in the iPhone X line back in 2017, they have relied on Samsung for sourcing most of those panels. Unsurprisingly, as recently as 2020, 80 percent of Apple products that featured an OLED panel used Samsung panels, while another 20 percent used LG-made displays. Apple has slowly reduced its dependence on Samsung, tapping into other chip suppliers and producing more first-party components, but the majority of its current-generation iPhones still use Samsung OLED screens.
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Apples iPhone X and XS devices, both sporting Samsung OLED screens, did not sell well because of saturated smartphone markets, lengthy upgrade cycles, lack of attractive new features, and competition from the lower-end iPhone XR, which uses a cheaper LCD screen.
Recent reports suggest Apple may be adding OLED screens to other upcoming devices – such as MacBook Pros and iPads – in order to reassure Samsung. Bloomberg reported last month that Apple would eventually adopt OLED panels to make the iPhone curved-screen version next year (most likely the 10-year anniversary edition), with Samsung as its only vendor. Samsung is set to provide Apple 80 million OLED displays for the iPhone 14, a line of iPhones expected to launch in September, according to reports out of Korea.
Samsung is set to become the exclusive vendor for the OLED LTPO displays in Apples Pro models of the Apple iPhone 13 iPhone 13 line-up later this year, according to reports from TheElec. Samsung Display will be the exclusive vendor used by Apple for LTPO OLED displays on the iPhone 13, TheElec has learned. Apple is expected to unveil Apples next-generation iPhone lineup later this year, with Samsung Display receiving almost 80 percent of total panels orders. Apple is planning on shipping 150 to 180 million iPhones in 2021, and Samsung will be providing most OLED panel orders for the devices.
While Samsung and LG are continuing to supply Apple with OLED panels, 2023 could finally see BOE ramping up the amount of displays they produce for Apple. Apple is reportedly considering whether or not to discontinue using BOE, the other vendor, and if so, Samsung Display could see its share of the iPhones supply chain grow further.
TL;DR It is more likely Apple will keep leaning on Samsung for components on the M2. Apple used Samsung to provide fc-bga for the original M1, but ET News reported that Samsung would continue supplying components for the M2. Apple could be using components manufactured by Samsung in certain iPhone models in 2022, according to The Elec. Because Apples various products are now touting parts developed by Samsung, ranging from memory chips to flat-screen displays, some have wondered what might happen to a supply-contract agreement between two competitors.
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Both Samsung and Taiwanese foundry TSMC made Apples A9 chip for the iPhone 6 smartphone last year, but the Taiwanese firm won the sole contract to build the A10 chip for the iPhone 7. While Apple had previously used both Samsung and TSMC for iPhone chip manufacturing, Apple switched to exclusively using TSMC in 2015. Apple has not given any chip manufacturing jobs to Samsung since about five years ago.
It is worth pointing out that Samsung has a very long history with Apple, providing Apples iPhones, iPads, and even Mac devices with all sorts of components including displays, memory, storage, and much more. This includes money made by providing components to Apple products like its iPhones and iPads, and also by selling its own Galaxy line of smartphones.
While Apple gets incredibly high marks in terms of supply chain management and sourcing components, not to mention the fact that Apple is itself the designer of the chips, that is not the case with Samsung, as they also need to rely on Samsung for parts for their products, including things like OLED displays, NAND flash memory, and DRAM. Samsung is the only company capable of producing OLED displays, NAND flash, and DRAM chips in quantities Apple needs for its iPhones, which are the primary driver of Apples revenues.
Apple sources from a number of suppliers, and not using Samsung is hard. Samsung has been the primary vendor of Apples iPhones since its inception, making its A-series processors, as well as providing NAND flash memory chips as well as DRAM. Samsung manufactured the majority of the A4 and A5 processors found in Apples mobile devices. As a result, Apple has had to purchase parts from Samsung, because at this point, Apple has the ability to produce only a small number of iPhones in quantities that Apple requires.
In fact, reports are already suggesting the panels in the higher-end iPhone 14 models will largely be from Samsung – LG has only a small percentage of supply.
What parts does Samsung make for iPhone?
The iPhone’s OLED screen, NAND memory, and DRAM chips were all produced by Samsung. Because Samsung is the only business capable of producing these products in the quantities required by Apple, Apple must get the parts from Samsung.
Is Apple using Samsung chip?
Sadly, Samsung does not produce the operating system that will be used by the Exynos chip. For instance, Apple can optimize the following A16 chip to fully support iOS 16. The team building iOS and the team designing the A16 are not separated intellectually.