The recent rumors from WSJ, who btw have a good track record of hitting Apple related scoops accurately, indicate that Apple is all set to pour huge amounts to secure components from Samsung. Samsung isn’t being called the scariest company in handhelds for nothing. They manufacture all key components like memory, displays (and awesome displays those are) and even chips. Infact rumors claim that Samsung manufactures the A4 chip for Apple as well. So as the rumors say, Apple is buying off components worth $7.8 billion from Samsung. This includes displays, applications processors, and NAND flash for iOS devices.
Apple sure needs huge supplies of NAND memory, CPUs and displays for its offerings. Given that iPad alone sold 15 million last year, together iPhone, iPod touch and iPad will be huge in 2011. A long term deal with Samsung is necessary for Apple as a lot of supplies in these categories is controlled by Samsung. In fact some old reports claim that Apple consumers as much as 40% of worlds NAND flash out put (which Samsung is the biggest manufacturer). Things do get tricky with Samsung’s Mobile arm going superbly aggressive with Android, Bada OS and even Windows Phone 7. They sure are leaving no stone unturned to become the biggest and the best in the filed.
Recent rumors of Apple using Samsung Super PLS displays on iPad 2 only increase this $7.8 billion deal chances and then an AMOLED screen on an iOS device is long rumors. And then iPhone nano (if it arrives) can surely spike the needs. The words from Apple COO during the last earnings call also indicated a heavy investment in a strategic area. No wonder big money from Apple’s cash reserves are being transported to South Korea!