Apple reportedly strikes new processor supply deal with Samsung

Apple has reportedly cut a deal for Samsung to provide the vast majority of its A-series chips, like the A8 found in the iPhone 6 and iPhone 6 Plus in the future. Samsung is said to have a contract for 80 percent of Apple's supply, but delivery is not supposed to being until 2016. A major factor in this supposed deal is the Samsung's ability to mitigate capacity risk, according to The Korea Times:

"Apple has designated Samsung as the primary supplier of its next A-series chips powering iOS devices from 2016 as the alliance with GlobalFoundries (GF) enabled Samsung to cut off capacity risk," a source familiar with the deal said.

Taiwanese chip maker TSMC will allegedly supply the remaining 20 percent of Apple's processors. The new CPUs will supposedly 14nm chips, smaller than the current 20nm A8 processors.

Source: The Korea Times