Tuesday 25th Oct 2016 - Logistics Manager

Apple strengthens influence over electronics supply chain

Apple is strengthening its influence over the electronics supply chain, according to a new report from IHS iSuppli.

Apple is expected to buy nearly $28 billion worth of semiconductors this year, up 15 per cent on 2011, according to an IHS iSuppli OEM Semiconductor Spend Analysis report from information and analytics provider IHS.

Second placed Samsung has fallen further behind – despite a 0.3 per cent growth, its spend is little over half Apple’s at $14.9 billion.

“It’s well known that Apple has already conquered the smartphone and tablet segments — but behind the scenes the company is engaging in another kind of conquest: the dominance of the electronics supply chain,” said Myson Robles-Bruce, senior analyst for semiconductor spending and design activity at IHS.

“Such a dominant position provides critical benefits, allowing one to dictate semiconductor pricing, control product roadmaps and obtain guaranteed supply and delivery. For Apple, these benefits translate into competitive advantages, letting it offer more advanced products at lower prices, faster and more reliably than the competition.”

Apple is set to expand its lead in global chip purchasing in 2013, with growth of 12.3 per cent once again leading the Top 10 OEM semiconductor purchasers.