Companies set to suffer as Apple, Samsung buddy up again

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Over the past couple of years, news about the conflicts between Samsung and Apple have drawn eyes, comments, and speculation. It makes for pretty exciting reading, especially for the curious and gossipy. But unknown to many, Apple and Samsung have had beneficial, working relationships with each other.

It may seem strange for rivals to cooperate, but business is business. And business is about to get that much more serious since these two industry giants are focusing more on products and less on lawsuits with each other.

apple samsung manufacturing chipsAs reported by Bloomberg, Apple and Samsung are setting aside old skirmishes to collaborate on what matters most: awesome gadgets and technology. Samsung is focusing on core components, manufacturing chips for Apple’s next generations of devices. It will help Samsung spur growth and profits, considering the slide it’s been experiencing in the smartphone market.

And in return, Apple gets access to the most sophisticated chips and manufacturing process to companies like SanDisk or Taiwan Semiconductor Manufacturing.

With Samsung and Apple being friendly again, SanDisk and Taiwan Semiconductor Manufacturing have had orders for their memory chips and flash drives cut. Apple is a huge client, so losing them to Samsung is going to be a huge blow to future profits and earnings. And if Samsung increases the use of its own chips for its own product lines, many other companies, such as California Micron Technology, SK Hynix, and AU Optronics are going to feel the pinch.

If Apple and Samsung work it out and last like a married couple, they won’t have much need for mistresses in the relationship. All you other companies better start making backup plans right now.

<Source: bloomberg>

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