Samsung to make majority of chips for iPhone 7

Apple strikes deal with main rival over processor production

Tags: Apple IncorporatedSamsung Electronics CompanySouth KoreaUSA
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Samsung to make majority of chips for iPhone 7 Samsung is to produce around three quarters of all processors for the next Apple iPhone.
By  Stephen McBride Published  January 26, 2015

Apple's chief rival Samsung Electronics is to be the main supplier of chips for the Cupertino-based company's iPhone 7, Reuters reported, citing South Korean business daily, Maeil.

The South Korean maker of the Galaxy handset series and current smartphone industry leader by shipments, will be the source for a reported 75% of next-gen iPhone processors, which will be produced by the firm's Austin, Texas-based factory.

No information was reported on the value of the deal.

Samsung's grip on the handset market has slipped in the past year, with several successive quarters of shrinking earnings. Its semiconductor business is seen by some analysts as a possible hedge against emerging Chinese competitors who are making cheaper devices.

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