Apple Is World's Largest OEM Purchaser Of Semiconductors

Apple has secured the top-spot as the world’s largest OEM (Original Equipment Manufacturer) purchaser of semiconductors, according to new research.

According to the study conducted by IHS iSuppli, a leading industry research outfit, Apple spent an overwhelming $17.5 billion on semiconductors in last year. That figure is almost 80 percent higher than what the iPhone maker had invested in the year before, Channel Register reports.

In 2009, the company came in third with almost $9.7 billion spending, trailing Hewlett-Packard and Samsung.

The report by iSuppli also said that last year Apple invested $2.4 billion more on semicoductors than its closest competitor HP. The figure is expected to go as high as $7.5 billion by the end of this year.

Around 61 percent of the total spending by Apple on semiconductors in 2010 was on chips for the iPad and iPhone, while HP invested 82 percent of its dollars for the purpose on notebooks, servers and desktops.

"Apple's strength in hardware sales lies in its device and media ecosystem—every Apple product is connected through iTunes/iOS and is synergistic with all other Apple products," iSuppli claimed.

"As a result, committed users of the Apple ecosystem derive more value from each additional Apple device they buy, and users have little interest in leaving the Apple realm."