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© Apple Business | August 12, 2011

Samsung's iPhone4?

Apple is suing Samsung. The Cupertino-based company has recently obtained an injunction that prohibits Samsung to sell its Galaxy Tab in Europe. But how much Samsung is actually in Apple's iPhone4?
The Economist has pulled numbers and USD 45.68 of the component costs of Apple's iPhone4 (16GB GSM) is going straight into the pockets of Samsung. Or in a different way: 26% of the total bill of material (suggested to be around USD 178). This makes Samsung the supplier of a significant proportion of the iPhone4 - one of its main rival's products.

© The Economist

Apple is amongst Samsung's biggest customers and - vice versa - Samsung is also one of the biggest suppliers for Apple. With both companies benefiting from this relationship, it did not seem to pose a problem. Samsung is able to produce its own products - smartphones and tablets - more cheaply, while Apple can concentrate on what it does best: designing consumer products.

However, that close relationship with Apple seems to be under threat. Apple is rumoured to be looking for a new supplier for the next-generation Apple A6 processor, with TSMC being named as the frontrunner.
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Source: The Economist
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