Apple to Purchase $7.8 Billion in Components from Samsung

Samsung has always been the primary supplier of parts for Apple’s mobile products, but the Wall Street Journal reports that Apple will be handing over a hefty $7.8 billion for components this year—making them Samsung’s single largest customer.

Considering that Samsung has their own consumer products to worry about, it seems surprising that they would get so cozy with one of their main competitors. But, like any proper capitalist business, Samsung is in it for the green, so they would be foolish to prejudice against any company, rival or not. The Galaxy Tab, Samsung’s iPad competitor, and the Galaxy S, their flagship smartphone, are both fairing decently in the market, but it is likely that Samsung profits more from their deals with manufacturers like Apple than by their own home-grown goods.

The parts that will trade hands include the usual crop of displays, processors and flash storage—just a lot of them.


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