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.
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.
Source: IHS iSuppli