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  • Apple, the World's Biggest Chip Buyer, Will Spend $28 Billion This Year


    According to the latest data from IHS iSuppli, Apple’s chip expenses will increase by 15.1% in 2012, up from the $24.3 billion the company spent in 2011. This will further the gap that Apple has over Samsung, which is expected to spend $14.9 billion on semiconductors this year, up just 0.3% from 2011. Half of the companies in iSuppli’s top 10 are expected to decrease their spending on semiconductors in 2012. These companies include Cisco Systems, Dell, Fujitsu, Hewlett-Packard, and Panasonic.

    iSuppli says that Apple’s lead in semiconductor purchasing has been maintained because the company continues to see strong demand for its products and has maintained what the company referred to as “beneficial relationships” with more than 150 suppliers. According to Myson Robles-Bruce, the senior analyst for semiconductor spending and design activity at IHS:

    It’s well known that Apple has already conquered the smartphone and tablet segments—but behind the scenes the company is engaging in another kind of conquest: the dominance of the electronics supply chain. Such a dominant position provides critical benefits, allowing one to dictate semiconductor pricing, control product roadmaps and obtain guaranteed supply and delivery. For Apple, these benefits translate into competitive advantages, letting it offer more advanced products at lower prices, faster and more reliably than the competition.
    The Cupertino California company’s projected 15.1% growth in chip expenses in 2012 is more than three times greater than the next-fastest-rising purchaser, which is Canon (which is expecting to see a 4.6% increase this year). In a more long-term forecast, Apple is expected to once again grow its chip purchasing in 2013 by another 12.3%. This would make Apple the top buyer of semiconductors and to once again see the greatest growth among the top 10 chip purchasers next year as well. According to Robles-Bruce:

    Apple will continue to outgrow the other major OEMs in chip purchasing because of its clear vision of the future, which extends a few years out. This vision includes a strategy to not only update currently popular products but also achieve success in other areas of interest like the television segment.
    Apple is definitely a company to watch out for as not only are they advancing and competing for the top spot in the tech industry when it comes to consumer products but they also seem to be rising in enterprise and apparently the supply chain as well.

    Source: IHS iSuppli
    This article was originally published in forum thread: Apple, the World's Biggest Chip Buyer, Will Spend $28 Billion This Year started by Akshay Masand View original post
    Comments 3 Comments
    1. PokemonDesigner's Avatar
      PokemonDesigner -
      With companies like apple we soon won't be able to even talk without being sued. You shouldn't be able to copyright words or phrases like "app store"
    1. RyoSaeba's Avatar
      RyoSaeba -
      This article simply fortifies the fact that Samsung makes billions from Apple, more so then from the sales of their phones.
    1. bigboyz's Avatar
      bigboyz -
      Well in defense many words are copy written by companies and other rich individuals. "Phat" "Def" "AppStore" blah blah blah. I mean as long as i can say these words without having to cough up $$ im good haha! When it comes to using it to further your business, well that just how business has always been. I discover something that will make $$ and I make it mine. I then let you lease it for a fee..sounds like the American Dream to me just saying :]