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Apple Now World's Largest Semiconductor Buyer

Lucas123 writes "Apple has leaped two spots to become the world's largest consumer of semiconductor technology, including NAND flash, NOR flash and microprocessors. Apple spent $17.5 billion on semiconductors in 2010, an increase of 79.6% over 2009. Sixty-one percent of Apple's semiconductor budget in 2010 was spent on wireless products such as the iPhone and iPad, while second place HP spent 82% of its semiconductor budget on computer products like desktops, notebooks and servers."

24 of 92 comments (clear)

  1. surprising by Anonymous Coward · · Score: 4, Informative

    it is surprising how hard it is for slashdot posters to click one link further to the real article instead of linking to the one with adds.

    http://www.isuppli.com/Semiconductor-Value-Chain/News/Pages/Apple-Becomes-Worlds-Largest-OEM-Semiconductor-Buyer-in-2010.aspx

    1. Re:surprising by Anonymous Coward · · Score: 3, Funny

      Can you link me to the one with subtracts?

  2. SAMSUNG by brunes69 · · Score: 3, Interesting

    And Samsung is the world's second largest semiconductor MANUFACTURER, after Intel.. including providing a lot of chips to Apple.

    Meanwhile, Apple is in the middle of a giant lawsuit against Samsung for it's mobile phone division, which is starting to seriously make a run for crown of the Android market, and is eating away at Apple's business.

    Fun times ahead.

    1. Re:SAMSUNG by papasui · · Score: 4, Insightful

      Well I think Apple's kinda got Samsung by the balls. Yeah Samsung is probably pissed about the lawsuit, but on the other hand if they say fuck Apple they just lost one of their largest customers. Granted Apple would need to get a new supplier but one thing I've learned in business is you never want the vendor thinking they are your only option. Hell I imagine Apple probably could start manufacturing the parts they want, I believe there sitting on around 60 Billion in cash.

    2. Re:SAMSUNG by wisty · · Score: 4, Interesting

      I'm guessing Samsumg's VP of mobile considers the VP of manufacturing to be an enemy, as both of them are in competition for the CEO postion. If hitting Apple hurts manufacturing, that's two birds with one stone.

    3. Re:SAMSUNG by CrackedButter · · Score: 2, Insightful

      Blame US carriers for lock in, not Apple.

    4. Re:SAMSUNG by Karlt1 · · Score: 5, Informative

      Meanwhile, Apple is in the middle of a giant lawsuit against Samsung for it's mobile phone division, which is starting to seriously make a run for crown of the Android market, and is eating away at Apple's business.

      Apple:

      1. Generates more revenue than any other company in the world selling cell phones (yes they generate more revenue than Nokia)

      http://news.cnet.com/8301-27076_3-20056289-248.html

      2. Has 50% of the worldwide profit in cell phones compared to 13% for all Android manufacturers combined:

      http://www.asymco.com/2011/05/16/iphone-share-of-phone-market-in-q1/

      3. The iOS app market is more than 17x bigger than Android's by revenue:

      http://techcrunch.com/2011/02/21/861-5-percent-growth-android-puny/

      Android from a business perspective isn't really doing that great.....

    5. Re:SAMSUNG by CharlyFoxtrot · · Score: 2

      Wow really ? The guy that presided over a 14% drop in phone sales is in line to become CEO and is willing to piss of the biggest customer of the profitable part of business to do so ? Talk about cutting off your nose to spite your face.

      --
      If all else fails, immortality can always be assured by spectacular error.
  3. Never has consumer savviness sounded so stupid... by denzacar · · Score: 2, Funny

    Apple strength in hardware sales lies in its device and media ecosystemâ"every Apple product is connected through iTunes/iOS and is synergetic with all other Apple products.
    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.

    In other words, through a common ecosystem, Apple leverages each device to sell other devices. Rising device sales to consumers then leads to increased semiconductor purchasing by Apple.
    .
    .
    A buyer that once purchased a Hewlett-Packard PC would just as likely purchase a Dell PC next if the price was better, given that there is little or no value in purchasing another Hewlett-Packard.

    Stupid PC buyers... buying according to their needs and monetary abilities. Why can't they learn that it is much better to be "committed".
    Also, HP (and Samsung) buys almost as much semiconductors as Apple (even without all those pricey touchscreens) - but it sucks ass.
    While Apple rocks.

    --
    Mit der Dummheit kämpfen Götter selbst vergebens
  4. And? by errandum · · Score: 2

    You have to understand that apple might as well be the biggest gadget manufacturer in the world. They do desktop computers, notebooks, netbooks and phones (Not to mention iPod lines with touchscreens, for example).

    And unlike android or windows, they do manufacture everything themselves, so the load is not spread between every company that decides to produce a windows laptop or android phone.

    1. Re:And? by hedwards · · Score: 3, Informative

      Apple manufacturers very little themselves, they contract out to folks like Foxconn for the actual manufacturing. Not that there's anything inherently wrong with contracting out the actual manufacturing, I just think that it's important to keep in mind that the contractors hardly work just for Apple.

    2. Re:And? by NatasRevol · · Score: 3, Informative

      You're comparing wrong.

      Apple is larger than HP, Dell, Acer, Asus, HTC, RIM, etc. And not by just a little bit either.

      Think how many laptops/desktops/servers/soon-to-be-tablets HP sells worldwide. Apple is bigger than that, by a lot.
      Think how many phone models/tablet models HTC sells. Apple is bigger than that, by a lot.

      --
      There are two types of people in the world: Those who crave closure
    3. Re:And? by dloose · · Score: 2

      you say that like it's a bad thing

    4. Re:And? by dgatwood · · Score: 3, Interesting

      The HP Revenue is twice that of Apple.

      Your numbers are out of date. For the quarter ending in February (HP) and April (Apple) of 2011, HP's revenue was about $32.2 billion, and Apple's was about $24.67 billion, and almost all of that difference comes from HP's printer division. In fact, if you subtract out printers, the HP services group (IT support, etc.), and the HP financial services group, HP would have brought in only $16.42 billion net in that same quarter.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

  5. That was fast... by Max+Romantschuk · · Score: 3, Insightful

    About ten years ago, before the iPod and OS X, I suspect very few of us suspected anything like this from Apple. As much as I don't agree with their walled garden approach to software, it's hard not to be impressed with what they have accomplished.

    And yet, we're very much in a transformative age in computing. Desktops are increasingly rare for mainstream computing, tablets are on the rise, and there are billions of people who are getting their first taste of the Internet not through a traditional computer, but instead a smartphone. Everyone is searching for the holy grail, the next big thing.

    It's gonna be an interesting next ten years. I for one is staying idealistic and hoping for open standards and interoperability across devices, platforms, and operating systems. Sorry, Apple.

    --
    .: Max Romantschuk :: http://max.romantschuk.fi/
    1. Re:That was fast... by Anonymous Coward · · Score: 3, Insightful

      You're right: desktops are dying. Smartphones and iPads are the choice of younger people now, and using those they can stay in touch via social networking wherever they are, rather than being tied to a desktop and a power cord. That's why this line from TFS was telling:

      > iPhone and iPad, while second place HP spent 82% of its semiconductor budget on computer products like desktops, notebooks and servers.

      Apple's share is in devices with explosive growth - they're positioned well for the post-PC world (and no matter what some people think, it IS coming - not 100%, but a world where the PC has little relevance to most people's lives). But HP's share is in the old world: desktops, notebooks, and so on. Servers will continue to be important, but one out of three is not a good thing for HP's future.

      Apple has managed to transform personal computing to something that people are excited about again. It's no surprise they have the biggest market cap of any tech company right now.

    2. Re:That was fast... by rolfwind · · Score: 4, Insightful

      There has to be closed-garden companies like Apple to make new paradigms. They control the OS, they can make it do what they want. They're also not afraid to do away with tradition that has no use anymore.

      Unlike PC manufacturers, who with Microsoft, can only design computers with what Microsoft had in mind. Tweaking can be done, but nowhere near the level needed that went from OS X -> iOS. They had PC tablets from 2001, and guess what, they were just junk. Just like the Windows phones, which had the same start button on bottom left mentality - give me a break!

      Even after 15 years of Linux, I haven't seen the open approach yield much in productive innovation on the desktop front. Design by committee is the worst. Or a 100 comittees in this case. And Microsoft has that same problem. And PCs have design by tradition. It took Apple to get rid of the floppy and some legacy ports that 99% of people don't use.

      And even after Apple is gobbling up the notebook market, I don't see many of the PC manufacturer so much as even copy them. Same plasticky, gimmicky shit notebooks as ever. Sure, Dell make copy MacBook Air with Adamo or whatever it's called (as useless as either were), and they may also make the shiny screens, or chicklet keyboards - but the bodies, the very first impression of a notebook on PCs has remains the same plasticky, unwiedly, fugly crap that they've been pushing out in 1998. No clean lines or anything like the Power Mac or moreso MacBook Pro. Boggles my mind.

      And I say this as someone that would like to see nice computers on the PC front as I work on a PC desktop. I recently got a hand me down desktop and it was fucking gaudy - LED lights and gauges everywhere, like a poor man's F1 racer in computer case form. Tried to find something minimalistic, and the nicest thing I could find was a black case version of das keyboard.

      *(I do love open source and open standards, but keep them the hell away from the GUI :D)

    3. Re:That was fast... by Max+Romantschuk · · Score: 2

      There has to be closed-garden companies like Apple to make new paradigms. They control the OS, they can make it do what they want. They're also not afraid to do away with tradition that has no use anymore.

      While you're right that controlling the whole stack does make it easier do throw away tradition, I have to disagree with the "has to" part. You're also right that a lot of the design work that goes on in the open source world is rather abysmal. But to assume that the open source approach in incapable of moving away from tradition or can never produce a decent GUI is just ignorant.

      For the most part I do agree that Apple does produce much nicer hardware than the average PC. But even in this case the exeptions justify the rule.

      --
      .: Max Romantschuk :: http://max.romantschuk.fi/
    4. Re:That was fast... by CharlyFoxtrot · · Score: 2

      And even after Apple is gobbling up the notebook market, I don't see many of the PC manufacturer so much as even copy them. Same plasticky, gimmicky shit notebooks as ever. Sure, Dell make copy MacBook Air with Adamo or whatever it's called (as useless as either were), and they may also make the shiny screens, or chicklet keyboards - but the bodies, the very first impression of a notebook on PCs has remains the same plasticky, unwiedly, fugly crap that they've been pushing out in 1998. No clean lines or anything like the Power Mac or moreso MacBook Pro. Boggles my mind.

      And I say this as someone that would like to see nice computers on the PC front as I work on a PC desktop. I recently got a hand me down desktop and it was fucking gaudy - LED lights and gauges everywhere, like a poor man's F1 racer in computer case form. Tried to find something minimalistic, and the nicest thing I could find was a black case version of das keyboard.

      *(I do love open source and open standards, but keep them the hell away from the GUI :D)

      Apple seems to be the only esthetic company in IT today. The thought that making a computer or device look and feel good could help people feel more comfortable and so help them to better use those devices seems wholly foreign to the rest of the industry. Other companies can copy some aspects of the designs but they can't seem to grasp the philosophy behind it that makes it work.

      --
      If all else fails, immortality can always be assured by spectacular error.
    5. Re:That was fast... by pandrijeczko · · Score: 2

      Apple seems to be the only esthetic [wikipedia.org] company in IT today. The thought that making a computer or device look and feel good could help people feel more comfortable and so help them to better use those devices seems wholly foreign to the rest of the industry. Other companies can copy some aspects of the designs but they can't seem to grasp the philosophy behind it that makes it work.

      Thank you.

      Exactly what I have been saying for years, nice to hear it from the mouth of a fanboi.

      "Apple makes fashion accessories."

      And for those of us with our sanity still intact:

      "Who gives a shit if a tool matches the colour of my man-bag."

      --
      Gentoo Linux - another day, another USE flag.
    6. Re:That was fast... by w_dragon · · Score: 2

      Because the cheap one costs $1, and I don't want to pay the 5000% markup for pretty plastic that still breaks? OK, Apple's markup isn't quite that bad, but it's significant for what you're getting. I'm writing this on a macbook on which the plastic has warped enough that the super-sexy DVD drive can no longer eject DVDs without some help from a screwdriver. It was fixed twice while this mac was under warranty, and the fact that they don't actually solve the problem with the part just tells me that Apple doesn't care about quality any more than those other companies that charge far less.

  6. Re:Never has consumer savviness sounded so stupid. by Kjella · · Score: 3, Informative

    Stupid PC buyers... buying according to their needs and monetary abilities. Why can't they learn that it is much better to be "committed".
    (...)
    While Apple rocks.

    Funny that, since Apple is the IBM of cell phones while Android is the Microsoft. If you invest heavily in Android apps, you can switch between any number of clones. If you invest in iApps, you're committed to Apple hardware which comes with a heavy premium.

    Don't get me wrong, I have an iPhone myself because it has features ahead of its time - but so did OS/2. But unless they keep moving they'll end up just like IBM did, overrun by cheap clones doing pretty much the same at a much lower cost.

    --
    Live today, because you never know what tomorrow brings
  7. Re:The iPads are to small for real work and smal c by jedidiah · · Score: 2

    Apple devices don't scale well for "work" in general. It doesn't matter if it's a higher degree of interactivity or just handling more "use".

    They are also intentionally limited in terms of "play".

    The new input devices certainly hold a lot of promise but the current devices that tend to employ them are overhyped. It's the inputs that are interesting not so much the devices they happen to be attached to today.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  8. Re:Never has consumer savviness sounded so stupid. by sunspot42 · · Score: 2

    If you invest in iApps, you're committed to Apple hardware which comes with a heavy premium.

    Huh? Apple's phones at worst are marginally more expensive than Android phones from the same carriers (especially discounting the two-for-one giveaway deals that are now cropping up on Android phones because otherwise the carriers couldn't move the things). We're talking $200-$300 over 2-3 years. For most people who can afford a smartphone at all, that doesn't even approach a "heavy" premium.

    And in exchange for the extra couple hundred dollars, you get world-class support - everything from prompt OS updates to a wide range of peripherals to the best in-store experience in the industry. I had an out-of-warranty iPhone die on me, and Apple swapped it out free of charge. That kind of service alone is worth way more than any "premium" they charge.

    You also get a phone with a much better user interface, and deeper app support.

    The only reason why Android is doing as well as it is: the carriers need something to keep Apple from becoming a monopoly and bossing them around. That's it. Android is still a junky knockoff, but it's a better knockoff than any of the idiots at RIM or Microsoft could come up with. It's serviceable. So, the carriers push it to keep from becoming beholden to Apple.

    It'll be interesting to see what'll happen over the next decade as wifi networks become ubiquitous and the carrier's networks won't matter as much for many folks (especially city dwellers). I'm sure the cable companies would love a slice of the mobile telecom pie too, which could accelerate the migration. I think the carriers are going to lose the ability to dictate which devices people use for telecommunications, and at what price. Apple is uniquely positioned to benefit from such a trend. The other makers all seem to depend upon the carriers to plug their junk. It'll be interesting to see what happens when the gatekeepers are no longer directing traffic their way.