The introduction of the Apple iPhone, followed by Android devices was a boon for South Korean electronics manufacturers, led by Samsung and LG. However, as noted by an article in the Joongang Daily, the relationship with Apple poses somewhat of a dilemma for the Korean firms. As Samsung and Apple products go toe to toe in the global market, the two companies are now more dependent upon each other than ever before.Samsung has never specified which parts it supplies to Apple. But when consumers disassemble the iPod, iPhone, and iPad, Samsung’s A4 central processing unit, NAND Flash, DRAM, and liquid crystal display panels are there in plain sight. Industry sources also say Samsung is in the running with LG to become the main display supplier for the second version of the iPad. Apple will place an order worth of $7.8 billion in parts for future productions.
As for the iPhone 4, Samsung parts account for 27.5 percent of the device, which amounts to $187.51 per iPhone, according to iSuppli, a research firm.
As shown in the accompanying graphic (click to see a full size version) Apple remains far ahead of Samsung in the global market. With the growing strength of Android devices in the world market, it will be interesting indeed to watch the shifts taking place in market share.