Like Apple, HTC begins reducing dependence on Samsung for smartphone parts

Posted:
in iPhone edited January 2014
HTC has switched orders for key components in its smartphones away from Samsung, in a move that echoes Apple's efforts to reduce reliance on a major competitor.

HTC has placed orders for CMOS image sensors with OmniVision and Sony, while part of its supply of AMOLED panels now comes from AU Optronics, DigiTimes reported on Tuesday. Those parts were said to have previously been supplied by Samsung.

Both Apple and HTC have apparently shown interest in moving away from Samsung, as Samsung is one of the world's largest smartphone builders in addition to a key supplier of important electronics components.

HTC is said to be concerned about yield rates and production volume of AMOLED displays from AU Optronics. As a result, HTC still purchases a portion of its displays from Samsung to ensure it will be able to stay at production capacity.

Teardown A6


Last month, it was said that Samsung was dropped as a NAND flash memory supplier for Apple's first batch of iPhone 5 units. Evidence to support that was found by iFixit, which discovered in its iPhone 5 teardown that the system-on-a-chip in their unit featured memory from Elpida.

Apple remains one of Samsung's largest and most important customers, and the South Korean electronics maker indicated in August that it intends to apply a "strict internal firewall" to protect its parts deals with Apple. Samsung's handset business and components operations are run separately in hopes of quieting concerns that conflicts of interest could arise.

Samsung continues to build the custom processors that power Apple's devices at its chip plant in Austin, Tex. That includes the new A6 chip that powers the iPhone 5.
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Comments

  • Reply 1 of 54
    And so it begins...
  • Reply 2 of 54
    saareksaarek Posts: 1,123member


    Maybe Samsung decided that HTC's dwindling orders were not worth their time any more and HTC found that they could get a better deal elsewhere for the amount that they are ordering.

  • Reply 3 of 54

    Quote:

    Originally Posted by dpnorton82 View Post



    And so it begins...


    Good riddance to both Samsung and HTC.


     


    Samsung is as low as it can get at the food chain, they are the "peasants" of the tech industry, however they try to use that (and fandroids too) to create and image of power. For example, since they manufacture pretty much everything, fandroids and stupid people in general seem them as true builders and responsible for idevices, computers, tvs, etc.. And so they think that samsung saves the best for themselves.


     


    The industry is teaching them a lesson, even if there is enough stupid people to buy their gadgets and make them billions of dollars.

  • Reply 4 of 54


    Pedromartins


     


    Read your post back to yourself, I am an Apple fan but your post is just ridiculous!

  • Reply 5 of 54
    lightknightlightknight Posts: 2,312member
    @pedromartins : I'd love to be a peasant earning mere billions of dollars. I'd love to have so little power that I'm "manufacturing pretty much everything".
  • Reply 6 of 54
    jragostajragosta Posts: 10,473member
    @pedromartins : I'd love to be a peasant earning mere billions of dollars. I'd love to have so little power that I'm "manufacturing pretty much everything".

    Yes, they're earning lots of money now. But when you add the billion dollars (or more) that they have to pay Apple to the loss of billions of dollars of business due to their craven intellectual property theft, this entire program to slavishly copy Apple's products is costing them quite a bit.
  • Reply 7 of 54
    mauszmausz Posts: 243member

    Quote:

    Originally Posted by jragosta View Post





    Yes, they're earning lots of money now. But when you add the billion dollars (or more) that they have to pay Apple to the loss of billions of dollars of business due to their craven intellectual property theft, this entire program to slavishly copy Apple's products is costing them quite a bit.


     


    They just posted $7.3 billion profit last quarter on smartphone business alone. The fine is costing them more than they would like to, but their tactics have still worked out quite well.

  • Reply 8 of 54
    quadra 610quadra 610 Posts: 6,743member

    Quote:

    Originally Posted by mausz View Post


     


    They just posted $7.3 billion profit last quarter on smartphone business alone. The fine is costing them more than they would like to, but their tactics have still worked out quite well.



     


     


    Which simply confirms Apple's concerns and legitimizes their litigation against Samsung and other thieves. A competitor is running amok, making billions, with Apple's IP.


     


    I want you to keep posting about how Samsung's practice of IP theft is making them obscene amounts of money. You're one of the best spokespeople Apple has ever had. Well done!

  • Reply 9 of 54
    dasanman69dasanman69 Posts: 12,979member
    jragosta wrote: »
    Yes, they're earning lots of money now. But when you add the billion dollars (or more) that they have to pay Apple to the loss of billions of dollars of business due to their craven intellectual property theft, this entire program to slavishly copy Apple's products is costing them quite a bit.

    And how much money are the others that didn't copy make? Even with the the billion(s) they have to give Apple, they're still ahead of the game. I don't agree nor condone copying but I understand why they did it.
  • Reply 10 of 54
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by mausz View Post

    They just posted $7.3 billion profit last quarter on smartphone business alone. The fine is costing them more than they would like to, but their tactics have still worked out quite well.


     


    Hum de dum… legal precedents for future lawsuits worldwide… hum doo doo… 

  • Reply 11 of 54
    DaekwanDaekwan Posts: 174member


    Is anyone surprised.  Samsung is not just a competitor, but is at the top of the food supply chain.  The more you depend on them, the stronger you make them and the weaker your position becomes.


     


    Why keep feeding the Giant, so he can only step on you more.  

  • Reply 12 of 54
    This isn't SamsungInsider so why would I care that HTC is making a logical move to not depend on a competitor?
  • Reply 13 of 54
    reefoidreefoid Posts: 158member

    Quote:

    Originally Posted by Tallest Skil View Post


     


    Hum de dum… legal precedents for future lawsuits worldwide… hum doo doo… 



    You think a decision in an American court (that is still under appeal) can be used as a precedent in other countries?  Good luck with that.

  • Reply 14 of 54


    Originally Posted by reefoid View Post

    You think a decision in an American court (that is still under appeal) can be used as a precedent in other countries?  Good luck with that.


     


    Does truth stop being truth when you go somewhere else? Why couldn't it be taken into account? 

  • Reply 15 of 54
    macrulezmacrulez Posts: 2,455member


    deleted

  • Reply 16 of 54
    kevtkevt Posts: 195member

    Quote:

    Originally Posted by Suddenly Newton View Post



    This isn't SamsungInsider so why would I care that HTC is making a logical move to not depend on a competitor?


     


    You cared enough to click on the article title, read it, and make a post.

  • Reply 17 of 54
    paxmanpaxman Posts: 4,594member

    Quote:

    Originally Posted by AppleInsider View Post



    ... the South Korean electronics maker indicated in August that it intends to apply a "strict internal firewall" to protect its parts deals with Apple.


    But how will it innovate?

  • Reply 18 of 54
    matrix07matrix07 Posts: 1,993member
    paxman wrote: »
    But how will it innovate?

    Holes in the firewall?
  • Reply 19 of 54
    newbeenewbee Posts: 2,055member

    Quote:

    Originally Posted by mausz View Post


     


    They just posted $7.3 billion profit last quarter on smartphone business alone. The fine is costing them more than they would like to, but their tactics have still worked out quite well.



    I love how you use the word tactics to describe what is actually stealing stealing. So I guess, in your world, Bernie Madoff was only guilty of using the wrong tactics .... lovely, just friggin' lovely.

  • Reply 20 of 54
    I'm not a fan of Samsung and I have said elsewhere that I will not buy another Samsung product as I've lost a lot of respect for them since they started "attacking" Apple customers in their ad's.

    I like that companies are starting to distance themselves from Samsung.

    Sooner they are out on their ear the better :)
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