Apple Inc. (NASDAQ:AAPL) is going to take out nearly $1 billion from its arch-rival Samsung’s business. In an article today, Business Insider reported that Apple Inc. (NASDAQ:AAPL) has stopped buying chips that go into its iPad and iPhone from Samsung and has instead opted for a Taiwanese supplier.
Apart from building consumer electronics products, Smartphones and other electronic goods, Samsung also has a flourishing business of making chips for all these devices. Apple Inc. (NASDAQ:AAPL) was one of its most prominent customers, buying the A7, A8 and other chips that it used for the manufacturing of the iPhone and iPad. But now, Apple Inc. (NASDAQ:AAPL) has switched away from Samsung to Taiwan-based TSMC for its chip manufacturing. Most people are attributing this to the bitter rivalry between the two companies.
Samsung’s chip making business is expected to have an 877 billion won, or nearly $851 million, operating loss this year due to Apple Inc. (NASDAQ:AAPL)’s switch. That would be down from a 203 billion won, or nearly $197 million, operating profit that Samsung made from its chip division last year.