Will Apple Dump Samsung?

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Daryanani said Apple could also choose to “go vertical” and build its own chip fabrication plants, though this was a far-fetched possibility.

Why Would Apple Want to Make the Hard Move?

Speculation that Apple plans to take its chip business away from Samsung has been rising because of their growing rift. While the Korean company currently builds all custom processors found in the iPhone, iPad, iPod touch, and the Apple TV, the two are also fierce rivals in the smartphone and tablet markets.

Earlier this month, it was rumored that Samsung had hiked the price of its mobile processors to Apple by 20 percent, though the former hastily denied the move. However, that led analysts to speculate about the scope of the loss to Apple if such a hike were to come through.

Samsung’s contract to provide chips to Apple expires in 2014.

What Does it Mean for Apple’s Stock?

Stock markets abhor uncertainty, so this speculation is not going to help Apple’s share price. However, in the longer term, finding an alternative will be a solution that works in Apple’s favor. After all, being so heavily dependent on your main rival to manufacture your most important products is not the wisest of moves.

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