iPhones and iPads, the Largest Chip Buyers in 2010

In the past year, apparently apple has been the super star in electronic world. People all over the world are all crazy for their products like Iphones. Naturally, apple has surpassed HP being the largest chip buyer in electronic field.

 

It said that driven by the booming demand for the iPhone and iPad, Apple Inc. has become the largest buyer of semiconductors among original equipment manufacturers (OEMs) for the ?rst time ever in 2010.

 

Let’s see some data first. In 2010, apple bought Rs.78,125 crore worth of semiconductors, a 79.6 per cent increase from Rs.43,303.57 crore in 2009. This represented the highest rate of increase among the world’s Top 10 OEM semiconductor buyers, allowing Apple to rise up two positions to take the no. 1 rank in 2010. However, when looking back, in 2009 Apple was the third-largest semiconductor purchaser, behind Hewlett-Packard Co. of the United States and Samsung Electronics Co. Ltd of South Korea while it was only sixth in 2008.

 

There are facts to explain this changing rank.

 

Firstly, Apple in 2010 was the world’s no. 1 purchaser of NAND flash because Apple’s surge to leadership insemiconductorspending in 2010 was driven by the overwhelming success of its wireless products, namely the iPhone and the iPad. These products consume enormous quantities of NAND flash memory, which is also found in the Apple iPod.

 

Although Apple and Hewlett-Packard have been rivals in the computer space for many years, an examination of their respective semiconductor expenditures shows that the two companies are fundamentally different.

 

Secondly, thanks to iPhones and iPads, Apple is more a maker of wireless devices than a computer manufacturer. The company spent approximately 61 per cent of its semiconductor budget in 2010 on wireless products such as iPhones and iPads. In contrast, 82 per cent of Hewlett-Packard’s 2010 semiconductor spending was dedicated to computer products like desktops, notebooks and servers.

 

Also, according to IHS, Apple’s strength in hardware sales lies in its device and media ecosystem—every Apple product is connected through iTunes/iOS and is synergetic with all other Apple products. Through this common ecosystem, Apple leverages each device to sell other devices, with the rising device sales to consumers in turn leading to increased semiconductor purchasing by Apple.

 

According to IHS, Apple is likely to continue increasing its semiconductor spending during the coming years at an above-average pace, allowing the company to extend its lead over Hewlett-Packard, Samsung and other OEMs in 2011 and beyond.

 

 

 

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