Apple Sheds Samsung as Supplier

Apple has heavily used Samsung as its parts supplier prior to the release of the Samsung Galaxy S.  It was a well managed relationship, but it seems recent events, such as the suing and counter suing by both companies is now leading to a strain in the supplier relationship.  Apple is shifting away from using Samsung as its suppliers for display screens, processor chips and flash memory components.

Pegatron has been rumored to have won the production orders for the iPhone 5 and iPad 3.  TSMC has been rumored to have taken the chip making aspects for iPhones and iPads going forward.  And a large slice of flash memory component orders have been taken away from Samsung and given to Toshiba.  These are all drastic maneuvers for Apple that can definitely harm Samsung's bottom line.

Samsung's launch into the smartphone and tablet market has been a great addition for consumers, but it could be taking on too much risk for the company as a whole.  Samsung grew from being a dominant electronics manufacturer and parts supplier, and with Apple pulling out, Samsung may suffer some noticeable revenue losses.  Hopefully Samsung will be able to recover the costs through expansion of its smartphone business.