'If you can't beat them, join them' was most likely Samsung's mantra when the company decided to pull the handbrake on the patent suits and other corporate warfare against Apple, and team up once again.
The two companies have decided to bury the war axe used by the late Steve Jobs and start working together on future projects, so the chips for the upcoming Apple models will be manufactured by Samsung, a report by The Economic Times says.
“Samsung will manufacture the main chip for the next iPhone, as well as displays for other Apple products, and it is budgeting $14 billion for new plants and equipment that are expected to accommodate the requirements of its big new client,” it says in the report.
Through this alliance, Apple will get their hands on some of the biggest and most sophisticated chip manufacturing operations in the world.
On the other hand, Samsung gets a great new client to fill the budget gaps left by the stagnating smartphone sales.
The new alliance also spells trouble for a couple of other companies, including the Taiwan Semiconductor Manufacturing Company and the American flash memory storage company SanDisk.
SanDisk, which makes memory chips for iPhone, iPad, and Mac, released a forecast on 15 April that fell short of analyst estimates. SanDisk cited lower prices, product delays, and loss of customers.
Apple is believed to be one of those customers, having turned to Samsung for the flash drives used in many newer Mac models, according to analysts.
"Playing against Samsung is never easy, they took away SanDisk's business at Apple" says Daniel Amir, an analyst at Ladenburg Thalmann, The Economic Times writes.