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Samsung to manufacture 75 percent of processors for next iPhone

According to a business newspaper, Samsung is reportedly on top of the list of manufacturers for supplying processors for next generation iPhone. The source claimed that Samsung will provide 75 percent of the processor chips for Apple’s next iPhone. These processors will be called A9 and will be manufactured in Austin Texas according to the report.

Though Samsung and Apple are bitter rivals in the smartphone industry, it is surprising to see how Samsung is keen on maintaining the relationship with Apple despite all other differences. This is not the first time that Samsung will be going to provide processors for an Apple device; Samsung has been the top supplier of processor chips to Apple for years.

Apple never said anything publicly about this backchannel partnership but the reports and rumors surfacing from inside the Cupertino Company over the past 2 years suggest that Apple less than thrilled to be paying its fierce rival for processors. For this reason, it has been in search for another chip maker for quite some time but no reliable partner has been found yet.

With increasing sales of Apple iPhone, Samsung is bound to get a financial boom as well. It’s funny to think that on top of all those Galaxy sales, iPhones are also generating revenue for Samsung.

According to research firm HIS Technology, Apple spent $30.3 billion on processors in 2013. While iPhone represents just a fraction of the total figure, it still matters. IHS reported that Apple pays $20 per iPhone 6 or iPhone 6 Plus processor. Apple sold over 39.3 million iPhones during last quarter of 2014, meaning Samsung get a handsome payout as well.

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