South Korean firm, Samsung, is now courting some of its competitor’s main parts suppliers, overtaking Apple Inc. as the world’s leading smartphones maker.
After expensive courtroom debates over technology patents, the two gadget giants are now going one-on-one over securing the best supply of parts as they push to rule the $253bn smartphone market. The two giant companies took 100% of the industry’s revenue in the first quarter, Canaccord Genuity data shows.
Trampling on Apple’s parts supplies could make life difficult for the U.S. company, as it prepares for its next upcoming product including a cheaper iPhone for emerging markets such as in China.
Having Samsung power in on its parts suppliers could increase costs and result in component bottlenecks, disrupting product releases.
Samsung’s big in-house supply chain, providing parts from displays and processors to memory chips and batteries, has been a source of strength in its battle for smartphone supremacy.
As the south Korean firm now looks to widen its lead with products spanning both high and cheap ends of the market, Samsung’s supplies have become stretched, prompting it to hunt elsewhere to ensure it is not caught short.