Samsung is going to provide the main microprocessor for Apple’s next iPhone, according to a Bloomberg article in The Economic Times. It’s also reportedly going to make displays for other Apple products.
This is a pretty dramatic turn in the biggest rivalry in the smartphone market. The shift apparently began last fall, when Apple CEO Tim Cook agreed to start ease off of some lawsuits his predecessor had pursued against Samsung. But it has also undoubtedly been helped along by Samsung’s floundering performance in the smartphone market over the last year as it lost valuable marketshare to its rival and many smaller competitors. That has likely persuaded the company to adopt a more accommodating position towards its arch enemy.
The warming relations should prove an economic boon for both companies, but will hurt other players in the business. The Bloomberg report points specifically to Taiwan Semiconductor Manufacturing Company and SanDisk, both of whom have been chip suppliers to Apple.
Samsung, meanwhile, is certainly not out of the smartphone game – at least not yet. The company only recently launched its newest flagship smartphones to great acclaim, and is unlikely to ease off the market as long as its devices continue to perform well.