Apple, Samsung top semiconductor spending

The two tech rivals claimed about 14% of total chip spending in 2013

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Apple, Samsung top semiconductor spending IHS says Apple and Samsung claimed about 14% of total chip spending in 2013.
By  Manda Banda Published  February 23, 2014

Technology giants Apple and Samsung remained the world's largest buyers of semiconductor chips in 2013, a new report from IHS Technology has revealed.

IHS said as the two rivals have intensified the battle to win the hearts and minds of consumers with their product offerings and have taken their rivalry to chip expenditure after topping the semiconductor spenders' rankings.

"As in 2012, Apple and Samsung were the top semiconductor spenders in 2013 among original equipment manufacturers (OEM) making more than $1bn in revenue," said Myson Robles-Bruce, senior analyst for semiconductor spend and design analysis at IHS. "Apple was in first place with chip spending in 2013 of $30.3bn, outspending runner-up Samsung's $22.2bn by more than $8bn. However, the South Korean electronics titan attained the largest spending increase on chips of any top 10 OEM last year, up almost 30% from 2012 levels, compared to a smaller expansion of 17 percent on the part of Apple."

IHS said the two mobile devices giants claimed about 14% of total spending in 2013, well ahead of other prominent OEM chip buyers.

IHS pointed out that in the top five are Hewlett-Packard in third place, with $10.1bn; Lenovo in fourth, with $9.2bn and Dell in fifth, with $7.7bn.

The rest of the top 10 includes Cisco Systems, Sony, Huawei Technologies, Panasonic and Toshiba.

According to IHS the served available market (SAM) for semiconductor spending reached $237.2bn in 2013, up nearly 5% after spending dipped from $231.7bn in 2011 to $226.7bn in 2012.

The SAM metric counts only expenditures that an OEM made as an external agent, which gives a truer picture of the state of chip spending in the electronics industry, the IHS report stated.

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