Apple and Samsung always fight for the smartphone market share but they pretend to be friends when they come to tread on chips. Recently, The Electronic Times reported that only the Taiwan Semiconductor Manufacturing Company (TSMC) will manufacture the A10 Chips for Apple’s next iPhone 7 series.
Though previously Samsung and TSMC manufactured Apple’s former iPhone chips, such as, the A9 Chip that was used on iPhone 6s and 6s plus, and the Chips provided by respectively both companies but on iPhone 6 and 6 Plus Apple used TSMC’s A8 Chips only.
Generally, using multiple companies’ products has vast advantages such as it is a convenient way that if a company struggles to supply the product you have other options to purchase the same product from, also there is an another choice for negotiation where you can bargain on the product and get the best price.
Furthermore, Apple sells tens of millions of iPhones per quarter but it is still not clear that which company provide the most Chips and which provide the best price for Apple, whether it is Samsung or TSMC.
Apple may consider getting A10 Chips for its next iPhone 7 series from TSMC because TSMC’s A9 Chip was slightly better for battery life on iPhone 6s or 6s Plus.
On the other hand, the Electronic Times reported that TSMC plans to rush the 10 nm chip production system in June.
At the end, consumers do not really think about the Chips whether it comes from Samsung or TSMC, they always look for the best phone, so, it must be a concern for Apple because as much as it uses the best product for its smartphone, by exactly that margin it can approach the consumer.