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WSJ: Samsung SoC Profits Outlook Gloomy as Apple May Shift A8 Chip Production

WSJ: Samsung SoC Profits Outlook Gloomy as Apple May Shift A8 Chip Production

Samsung has long been the sole supplier of Apple’s custom A-Series chips that power the Cupertino firm’s popular iPad and iPhone devices. However, a recent report from the Wall Street Journal says that is changing, as the South Korean firm has signaled that the outlook for its System on a Chip business is bleak.

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AppleInsider:

In its quarterly earnings report last week, Samsung disclosed that demand from its “main customers” for custom chips has “continued to decline.” Investors who spoke with The Wall Street Journal took that as a potential sign that Apple could begin shipping devices with chips built by Taiwan Semiconductor Manufacturing Co. as soon as this fall.

While sources reported earlier this year that the Taiwan Semiconductor Manufacturing Co, (TSMC), has begun shipping A-Series chips to Apple, every teardown of iOS devices since the report have yielded only Samsung built SoC’s.

Samsung’s “weak demand” comments come as Apple is preparing to debut it’s “iPhone 6,” which is expected to continue to show sales growth for Apple, and is expected to be available in two larger screen sizes.

Apple has continually been reported to be making moves to wean itself off of “frenemy” Samsung as a supplier for parts to build its popular devices, and TSMC has been cited numerous times as the potential replacement for Samsung as the supplier for Apple’s A-Series chips.

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