Apple This

Apple is holding strong as the dominant leader in the global electronics supply chain and is expected to make the gap between itself and other companies even larger by becoming the largest buyer of chips in the world, spending an estimated $28 billion in 2012 alone.

IHS iSuppli data sees that Apple’s chip expenses will increase by as much as 15.1% in 2012, up from the $34.2 billion the company spent in 2011. That will increase Apple’s dominance over Samsung, which is only expected to spend $14.9 billion on semiconductors in 2012, an increase of only 0.3% from the previous year.

It is believed, by iSuppli, that Apple’s lead in semiconductor purchasing has remained strong due to the fact that Apple continues to see strong demand for all of its products. In addition to that, Apple has maintained “beneficial relationships” with over 150 suppliers.

According to Senior Analyst for Semiconductor Spending and Design Activity at IHS Myson Robles-Bruce, “It’s well known that Apple has already conquered the smartphone and tablet segments, but behind the scenes the company is engaging in another kind of conquest: the dominance of the electronics supply chain. Such a dominant position provides critical benefits, allowing one to dictate semiconductor pricing, control product roadmaps and obtain guaranteed supply and delivery. For Apple, these benefits translate into competitive advantages, letting it offer more advanced products at lower prices, faster and more reliably than the competition.”

Apple is also predicted to increase its chip purchasing in 2013 by 12.3% and remain the top buyer of semiconductors and once again see the greatest growth among the top ten chip purchasers next year. According to Robles-Bruce, “Apple will continue to outgrow the other major OEMs in chip purchasing because of its clever vision of the future, which extends a few years out. This vision includes a strategy to not only update currently popular products but also achieve success in other areas of interest, like the television segment.”

Source: Apple Insider – Apple remains world’s largest chip buyer, projected to spend $28B this year

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