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Nokia to join Apple to bring down Samsung

Apple vs Samsung

We all know that Samsung sells a lot of smart phones, in fact, it has been the world’s number one smart phone manufacturer selling the highest number of phones for quite some time. And we would think that Apple is the second largest on the list. But it is not. Apple comes third with Nokia coming between the two companies in second place. According to the reports coming from Gartner, Nokia sold 85 million phones in the fourth quarter of 2012, which is almost double of the 43.5 million iPhones that Apple sold. But Nokia’s number accounts for only 80% of what Samsung sold in the same period. Together, these three companies sold almost half of the total smart phones sold around the world.

Samsung is not only making smart phones, but it is also manufacturing electronic components that so many other smart phone manufacturers need for their smart phones, such as displays, chips, memory units, and so on. And Apple is the number one customer of Samsung for these products. But Apple is already working on moving away from Samsung, as it has become the number one competition for Apple in the smart phone market.

And Apple is not the only company trying that. Nokia is also planning to get away from Samsung and decrease the dependency on Samsung for its hardware components. If these companies work together, they may be able to give Samsung’s revenue a huge blow. It is a well known fact that Samsung does make a good amount of money selling just the components, leaving its line of smart phones out of the picture.

Apple is already working with other suppliers such as Sharp and LG for its display needs. Pretty soon, we may see the Cupertino tech giant moving to other suppliers for its processors and memory unit needs. If this happens, there is a good chance that other smart phone manufacturers may do the same. This would leave Samsung only with its smart phone line for revenue, sinking its very old business of hardware component manufacturing.

Source: Apple Insider