A UK fund manager is warning Apple that it shouldn’t ruin its relationship with Samsung.
Polar Capital fund manager Ben Rogoff told The Telegraph: “Apple needs strong suppliers. Apple needs to be careful what it wishes for. If this relationship deteriorated, you'd see Apple looking to diversify its supplier base, but that's hard to do.”
The report notes that Samsung makes application processors for Apple’s iPad and iPhone that Apple doesn't have another source for.
Apple is Samsung’s biggest customer and its business is worth 8.8% of Samsung’s revenue. Samsung is the manufacturer of the A-series of processors – the A4 and A5 chips that Apple designs in-house and uses as the heart of the iPad and iPhone.
When Apple was reported to have secured chips from Elpida, the news wiped $10 billion of Samsung’s market cap, however, Samsung denied that the claims that Apple had stopped its orders.
Apple and Samsung took to a US court last month. The jury found Samsung guilty of infringing Apple's patents wilfully.
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Samsung sells twice as many smartphones, but makes half Apple's profit
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Comments received
Baskaran said on Tue, 04 Sep 2012
Samsung will loose more if they mess up the relationship with Apple. But the article tells otherwise - twisting the facts. What Samsung is doing is conflict of interest. It should not be in the both component business and the phone business. It should stop one of that. If you are a competitor to yourself it will mess up everything.
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