Apple rumored to be reducing Samsung order for iPhone 5 memory modulesApple is rumored to be slashing its order with Samsung for memory chips which will form part of the new iPhone 5 and other Apple products. The news comes from a report by Reuters who have been talking with a source who has direct knowledge of the matter.

Apple has been cutting back its orders from Samsung as it seeks to diversify its memory chip supply lines, although the South Korean firm remains on the list of initial suppliers for the new iPhone, the source told Reuters. The person declined to be named because the negotiations are confidential.

The Korea Economic Daily, citing an unnamed industry source, reported on Friday that Apple had dropped Samsung from the list of memory chip suppliers for the first batch of the new iPhone, the iPhone 5, which is widely expected to be unveiled next Wednesday. The report said Apple instead picked Japan's Toshiba Corp, Elpida Memory and Korea's SK Hynix to supply DRAM and NAND chips.

"Samsung is still on the list of initial memory chip suppliers (for new iPhones). But Apple orders have been trending down and Samsung is making up for the reduced order from others, notably Samsung's handset business," the Reuters source said.

It is unclear if the reduced orders to Samsung are directly related to the poor relationship between the two companies or if it is purely down to business economics. Apple is said to be sourcing its memory modules from other manufacturers however Samsung still remains a key supplier of other parts for Apple products.

After Apple won the recent patent dispute with Samsung in the United States, it should come as no surprise that Apple would be shying away from Samsung and looking to other manufacturers. It will be interesting to see over the coming years if Apple can source all components from other manufacturers and no longer have the need to rely on Samsung to fulfil its iPhone and iPad component needs.

Source: Reuters