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Apple, Samsung emerge as Chief OEMs in semiconductor spending 2013

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EL SEGUNDO, USA: Apple and Samsung persisted being the Globe’s prime purchasers of semiconductor chips in 2013, but then again the escalating mêlée sandwiched between the two for the temperaments and cognizance of consumers in the space of their product offerings could augury another colossal face-off this year as regards the top ranking, as per a new-fangled report, Courtesy, IHS Technology.

“As in 2012, Apple and Samsung were the top semiconductor spenders in 2013 among original equipment manufacturers (OEM) making more than $1 billion in revenue,” articulated Myson Robles-Bruce, senior analyst for semiconductor spend and design analysis at IHS.

“Apple was in first place with chip spending in 2013 of $30.3 billion, outspending runner-up Samsung’s $22.2 billion by more than $8 billion. However, the South Korean electronics titan attained the largest spending increase on chips of any Top 10 OEM last year, up almost 30 percent from 2012 levels, compared to a smaller expansion of 17 percent on the part of Apple.”

Collectively, the two claimed around 14 percent of the total spending in 2013, well ahead of other conspicuous chip buyers. Bracing the Top 5 is Hewlett-Packard standing tall in the third place, with $10.1 billion in spending; followed by Lenovo in the fourth, with $9.2 billion; and Dell in fifth, with $7.7 billion. The rest of the Top 10 reads in the order of Cisco Systems, Sony, Huawei Technologies, Panasonic and Toshiba.

Overall, the Served Available Market which stands for the acronym SAM intended for semiconductor expenses touched $237.2 billion in 2013, hulked approximately 5 percent once spending dunked from $231.7 billion in 2011 to $226.7 billion in 2012, that is.

The SAM metric counts only overheads that an OEM made as a peripheral agent, which contributes a spot-on representation concerning the state of chip expenses in the electronics industry. This is for the reason that SAM does not influence in spending via manufacturers for chip buying completed at their own internal divisions-as can happen with Giants like Samsung, whose internal customers within the immense Samsung family of companies compete with external clients in finding Samsung-made semiconductors.

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The findings are enclosed in the report, “Wireless and Industrial Boost Semiconductor Spending,” which trajectories the semiconductor procurement relating to more than 200 electronics companies.

Apple and Samsung: No Dead Man’s Road comprehended for the fierce competitiveness

In the face of the consumer market, Apple and Samsung endure to face off bracing their respective smartphones and tablet largesse, where the two are literally locked in fierce contest. Apple remains the spearhead on both the fronts, by means of its iPhone and iPad vending in great numbers than Samsung’s Galaxy array of handsets and tablets.

Gradually, Apple is finding it tough to hold its ground against a blitzkrieg of competitors-including a well-equipped Samsung, Robles-Bruce observed. In the realm of smartphones, for a case in point, Samsung’s strategy takes account of an effort to sell models even in areas of the world with already high smartphone penetration.

The high cost of the iPhone, in dissimilarity, has disallowed the handset from being widely espoused in developing countries where markets remain ripe for cleaving-despite a fresh iPhone triumph in China for broad distribution and massive sales for its novel Apple iPhone 5s.

Samsung’s unmistakable plan to use flexible active-matrix organic light-emitting diode (AMOLED) display technology on its product offerings could also be a future differentiator or for that matter, a Genre – bender from products by Apple, which has undoubtedly signposted it, requires nothing to do with OLED technology. If OLED technology latches unto consumer drifts, Apple could start to suffer, which would be mirrored in the California maker’s phenomenal chip-buying clout.

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In the meantime in tablets, Samsung has similarly made great paces. Its stake in the international tablet market has ascended to about 22 percent, closing unto Apple’s 30 percent market share, in a niche that Apple virtually possessed and was once assumed to be incontrovertible.

Such volatile dynamics in the middle of the dual challengers could prepare the ground for what may be rounded as another buoyant tug of war; when figures are calculated at the end of the year for the semiconductor spending crown, with the domino effect in the offing to be watched closely by all quarters.

Proverbially even, Wireless expenditure is still liege

Disbursements the last year on semiconductors was heavy-duty in the wireless fragment in the midst of seven diverse application categories.

Wireless accounted for nearly one-third of total OEM chip spending at 31 percent, followed by chip spending on computer platforms at a detached second with 22 percent. In third spot stayed chip spending on consumer devices, at 16 percent.

The residual four categories claimed single-digit cut in total OEM chip spending. These sections include industrial, automotive, wired communications and last but not the least computer peripherals.

The first OEM buyers in the wireless division were Apple, Samsung, Huawei, ZTE and LG. Plus, for the first time, that is, spending on tablets left behind on wireless infrastructure. Both were still well behindhand as regards handsets, which remained significantly the top category for OEM chip spending in the wireless segment.

Wireless was also the fastest-growing application segment this year, upping the ante at 20 percent; with industrial electronics in second spot, up by 7 percent.

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Jawed Akhtar

A Journalist by interest and a Music Enthusiast by passion. Wedded to Mother Nature, Jawed indulges his aesthetics in travelling and reading books of varied genres. Having covered News stories for top Dailies in his formative years, that is, he is game for tryst with Technology at Techmagnifier.

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