Apple Inc. has just landed yet another cold strike on the business of Samsung – its biggest rival in the consumer electronics space. The U.S. and South Korean tech giants hold a long standing relationship as both friends and foes. However, recent events have seen their ties go under a lot of strain.
It now appears as though as Apple is ready to cut what is left of that friendship a little shorter. News this week reports that Samsung will no longer be making the A10 chips that will feature on the this year’s iPhone 7. The cut comes several days before the launch of Samsung’s latest iPhone challenger, the Galaxy S7.
In a kind of balancing of scales, Apple Inc. has been both the giver and recipient of the cold shoulder this week. In Apple’s case, the company’s Apple TV streaming plans are experiencing more setbacks in their battle to gain traction. CBS reports that it has put talks of streaming TV with Apple on ice.
Apple strips Samsung of chip making business
Though Apple and Samsung have held their fair share of disputes over the years, the two tech entities regularly work as partners. For instance, Apple’s leading A9 chip, the brains behind features like 3D Touch and enhanced Touch ID, seen on the new iPhone 6S and 6S plus, was produced by Samsung and another tech firm – Taiwan Semiconductor Manufacturing Company (TSMC).
This year the task of producing Apple’s upcoming A10 processor was only given to one of the two firms. Samsung didn’t make the cut.
Reports from Apple show that when compared to one another, the A9 processors from TMSC outdid those made by Samsung by 3 percent. It is believed that this was part of why Apple dropped Samsung and gave the task to the South Korean entity’s A9 chip rival.
There were a few other alleged reasons too. MacRumors says it was TSMC’s 10-nanometre building process that won Apple’s favor. This was aided by the Taiwanese firm’s great packaging techniques as well. While these reasons are likely to be true, many were quick to point at the recent legal spats between the two giants.
The decision made by Apple Inc. would see Samsung lose out on “the holy grail of chip contracts”. The business supplied by Apple was the largest of Samsung’s semiconductor making unit. The east Asian rival is bound to feel the effects of the U.S. i-device maker’s choice.
However, this isn’t the first time Apple has given Samsung the cut. Samsung was not among those chosen to make the iPhone 6’s A8 chip, but regained a contract to make the phone’s successor a year later. Some analysts have assured that Apple is a company that operates in cycles. It is likely that Samsung will get to build the A10’s successor next time around.
The iPhone 7 is set to go into production this summer.
CBS says Apple TV streaming is on ice
Apple wasn’t the only one’s making tough calls this week. Those keen on experiencing the Apple TV’s promised Internet streaming might have to wait a little longer than expected. According to Les Moonves, chief exec at CBS, the broadcasting giant hasn’t made any progress on streaming content with Apple Inc.
“We had conversations a while back, and we haven’t had recent conversations with them,” Moonves admitted on CNNMoney. But the CEO says lack of communication does not mean there is a lack of interest. Moonves stressed the vital role that streaming content will play for both companies, and that CBS content will likely be seen on the Apple TV soon enough.
“Do I think something will happen? Probably, but I do not know when.”