LONDON – Apple Inc. has reduced its order with Samsung Electronics Co. Ltd. for memory ICs for its forthcoming model of iPhone, according to a Reuters report that referenced an unnamed source.
Samsung supplies a variety of components to Apple – including processors, LCDs, DRAM and NAND flash memory – but it is also a rival, selling Galaxy smartphones and tablet computers that compete with Apple's iPhone and iPad. And the two companies are entangled in a number of legal battles around the world alleging patent infringement and copying of the look and feel of mobile equipment.
It is not clear whether Apple is cutting back its memory order because of subdued general economic forecasts for the fourth quarter, or because it is trying to reduce its dependence on its rival, or a mixture of the two.
The Reuters report quoted a source saying Apple has been cutting back orders to Samsung as it seeks to diversify its sources of memory but that Samsung remains on the list of suppliers for the new iPhone.
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