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Apple distancing from Samsung & Google

You don’t want your enemies too close. Especially if they happen to be responsible for a big chunk of your innards.

And so Apple is said to be severing its ties with Samsung for its next generation processor, the A7, which is due out next year. Samsung has been Apple’s manufacturing partner for processors since the days of its A4 processor. However, Samsung has also become Apple’s de facto nemesis through Samsung’s successful Android smartphones. Rumor now is that Apple will be having its A7 processor done in Taiwan.

Meanwhile, Apple is also plotting to prune as much of Google as possible from iPhones. In fact, Apple is in talks with Yahoo so that the latter can provide even more content by default to iPhones. Yahoo would certainly love to have a platform that it can call its own. And of course this will come at the expense of Google exposure on iPhones. After all, Google is the company behind the Android menace.

How big a blow will this be to Samsung Semiconductor and to Google? No doubt, Apple chips play a huge chunk of change in Samsung Semicon’s sales. Losing the Apple account could be a serious blow, so Samsung will have to make up for it by aggressively gunning for even more sales on the smartphone front. As for Google, expect the company to work on ways to keep iPhone users hooked. Like, you know, with the recent Google Maps vs. Apple Maps fiasco.

The bigger risk will be carried by Apple. The gamble here is that whatever Taiwan manufacturer they talk to will actually have the logistical heft of a Samsung to supply the massive numbers of chips that they will need. If not, Apple risks facing shortages. Then again, Apple CEO Tim Cook is a logistics guy. Let’s hope he knows what he is doing.

And Yahoo on the iPhone? Let’s see. Yahoo has been resurging as of late. If they completely capture the iPhone search platform, then Google better do something drastic (and enviable) over at Android.



Art is a long-time editor for a number of technology publications. He is a Palanca-winning writer (he got lucky) whose day job is to try to be as serious as possible while being a management consultant and lecturer. His favorite noodles: chapchae.

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