Photo: CBS Interactive
Steve Jobs seems to have found a new whipping boy in Samsung, but because Samsung makes so much money building chips for Apple devices, the company has little choice but to take the abuse.In his iPad 2 introduction, Steve Jobs took a few shots at Samsung, calling its Galaxy Tab an imitator and misquoting a Samsung rep as saying that sales were quite small. (He got the quote wrong, but the sentiment — that there were a lot of Tabs sitting on shelves at the end of the quarter — was probably right.)
But as Businessweek notes today, Samsung is the world’s largest supplier of flash memory to tablets and smartphones, and manufactures the A4 and A5 processors that go into the iPad and iPad 2 — Apple designed them, but Samsung actually created the circuitry, according to experts that study chip design.
Weirdly, Samsung still uses chips from Nvidia in its own tablets.
Apple and Samsung are also reportedly negotiating over a contract for display technology that could be worth up to $7.8 billion to Samsung.
There may be more to the picture. Yesterday, Apple was reported to be expanding its relationship with Taiwan Semiconductor, a Samsung competitor. So it’s possible that Jobs is insulting Samsung as Apple prepares to break off part of their relationship.
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