Apple, Samsung to remain bedfellows for next iPhone -- report

Samsung will produce 75 percent of the processors Apple needs for its next slate of iPhones, according to a report out of South Korea.

Though bitter rivals, Apple and Samsung are showing no signs of scrapping their relationship in the mobile chip business, according to a new report.

Samsung, which builds consumer electronics as well as processors, will provide 75 percent of the chips that Apple will need in its next iPhone, South Korea-based Maeil Business Newspaper reported Monday, citing people who claim to have knowledge of the companies' plans. Samsung will produce the chips, believed to be dubbed A9, at its factory in Austin, Texas, the report says.






Samsung has provided processors for Apple's smartphones for years. While Apple has said little publicly about this, a steady stream of reports and rumors over the last couple of years suggest that the company dislikes paying a rival for processors and has been looking elsewhere for chip production.

For Apple, the alternatives in chip production are numerous, though seemingly unappealing. Samsung has a wide range of competitors, including GlobalFoundries and Taiwan Semiconductor. So far, however, Apple has been incapable of moving all of its production to other providers. Exactly why the company has been loath to rely heavily on the other firms is unknown.


Source:
http://www.cnet.com/news/apple-samsung-still-bedfellows-as-they-eye-next-iphone-report-says/