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September 7, 2012

Apple slashes its chip order from Samsung

Samsung chips are equipped in Apple's iPhone

By CBR Staff Writer

US based iPhone maker, Apple, has reduced its order with its main supplier and competitor Samsung for memory chips which will be equipped into its iPhone 5, in a bid to expand supply lines and reduce dependence on Samsung.

Samsung has been a key producer of micro processors, flat screens and memory chips, including both dynamic random access memory (DRAM) chips and NAND memory chips, for Apple’s iPhone, iPad and iPod.

According to The Korea Economic Daily, Apple instead selected Japan’s Toshiba, Elpida Memory ELPDK.PK and Korea’s SK Hynix to deliver DRAM and NAND chips.

Simultaneously, Apple is anticipated to install Sharp’s in-cell displays for its upcoming iPhone 5, in a bid to reduce expenses.

The new displays are claimed to be less expensive to manufacture over the earlier which were provided by Samsung.

The new reduced orders from Apple is said to have been prompted by a souring relationship between the two firms, which are currently involved in global patent disputes.

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