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Apple Is The World’s Largest Buyer Of Semiconductor Chips

Apple’s success in the smartphone and tablet market has brought it an unprecedented success. iPad and iPhone are flying right of the shelves in millions and this has hugely increased the semiconductor consumption of Apple, making it the largest chip buyer in the whole world. Although Samsung comes second in the list, it is still far off in terms of buying volume, when compared to Apple.


According to IHS Suppli, Apple buys a whopping 50 percent more flash memory and processors compared to Samsung, the arch rival of Apple in the smartphone and tablet market. Samsung is itself a huge company which ships out a lot of products and has recently become the largest handset vendor, yet it is surprising to note that it lags well behind Apple in terms of semiconductor consumption.

While Samsung is the second largest consumer of chips, it is also the second largest producer of such chips. In fact, Samsung is also among the main chip producers for Apple’s iOS devices.

Back in 2009, Apple was spending $9 billion on semiconductors and this amount is expected to shoot up to $29 billion in 2013. On the other hand, Samsung was spending $10 billion in 2009 and is expected to bump this amount to $18 billion in 2013, significantly less than that of Apple’s purchases.

According to IHS Suppli’s Dale Ford, “”Pretty much everybody has to take pretty conscious account of where Apple and where Samsung will be. In industrial, automotive, and every other sector, their reach, influence, and size has been a significant change.”

When it comes to chip production, Intel still stands well ahead of its contemporaries, grabbing 15 percent revenue of the overall chip industry. However, Intel still has to become relevant in the mobile market and for that, it has to work hard. Samsung falls in the second place, accounting for 9 percent revenue of the chip industry.

Source: IHS Suppli

Courtesy: CNET

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