Samsung wants to grab the country's mobile phone chip market

When we talk about Apple and Samsung, we think of the biggest patent dispute in 2012. In the past two years, the competition between Apple and Samsung has become increasingly fierce. After endless infringement lawsuits between the parties, the US court finally ruled that Samsung infringed several Apple patents and sentenced Samsung to pay $1.05 billion in compensation. Since then, the two former partnerships between Samsung and Apple have also come to an end. There are continuing news that Apple has begun to transfer many Samsung orders to other manufacturers.

Samsung has always been an important supplier of Apple mobile device processors, batteries, and screens. It is reported that Apple will use 12 to 18 months to complete their "go to Samsung" program, but Apple's actions will not have much impact on Samsung. It is reported that Samsung intends to expand the smart phone chip market in China. According to foreign media reports, Stephen Woo, head of Samsung's system chip business, said that the company will consider supplying chips to more Chinese and other emerging market smart phone manufacturers. Reduce the impact of the drop in Apple's demand.

Samsung and Apple account for more than half of the global smartphone market, and Samsung is a major supplier of mobile chips. Apple's products and Samsung's Galaxy series phones and tablets all use Samsung mobile chips.

As Apple hopes to reduce its reliance on competitors in the procurement of components and components, there is growing concern in the market that Samsung’s mobile chip business revenue may decline.

Stephen Wu said in an interview, "We plan to enhance our partnership with other smartphone manufacturers."

Providing processor chips for Apple products has been the main business of Samsung's system-on-chip business unit. Goldman Sachs estimates that sales of mobile chips sold by Samsung to Apple this year will increase to 9.3 trillion won (US$8.8 billion), which is close to 80% of Apple’s purchase of Samsung components. With Apple transferring 30% of its mobile chip orders to other companies, the amount of mobile chips that Apple will purchase from Samsung will be reduced to 2.5 trillion won next year. In 2017, 70% of Apple's mobile chips will come from companies other than Samsung.

Stephen Wu said, “We should diversify our customers and we are already working on this and we have won some Chinese manufacturers. In addition, we are also very optimistic about smart phone manufacturers in emerging markets and will continue to supply chips to them. Meizu's MX smartphone and Lenovo Music Phone K860 are equipped with Samsung Exynos chips.