Once again, Apple has switched to Samsung for the production of iPad 2 and iPhone 4S processors. While the production line of Samsung which is $3.6bn has already reached its full capacity point; the rest of the production line is busy producing NAND flash memory chips.
Growing Friendship: Apple and Samsung
This is not the first time that the two brands have come up together, earlier also they have worked on mobile processors and in fact, Samsung co-designed the Apple A4 single-core chip which is found in the first-gen iPad and the iPhone 4 gadgets. Every month, the workforce of 1,100 workers makes 40,000 silicon wafers and the workforce is recruited just recently. Also, supply to Apple began in the first quarter of 2011 only.
No matter, Apple is putting in its best efforts to extricate itself in the production line, but still it is clear that Apple is interdependent on Samsung. Both the firms are midway through a lengthy legal campaign.
Earlier this year, Apple has negotiated with chip provider TSMC in the hope that it would reduce the cost it spends on outsourcing parts. However, it did not work out and left Apple with no choice but to maintain relations with Korean foe.