Apple is planning to diversify from Samsung to Toshiba for chips
Tablets and chip businesses of Korean firm Samsung Electronics are expected to be affected by a legal battle with its customer Apple.
The intensifying legal battle between the two companies over smartphone and tablet patents is having a detrimental effect on Samsung, according to Reuters.
Samsung has been successfully blocked by Apple to sell its latest tablets in Germany and some smartphone models in the Netherlands, while the iPhone maker also delayed launch of Samsung Galaxy tablets in Australia over a patent related court case.
It is also reported that Apple is planning to diversify from Samsung to Japan’s Toshiba for chips, which could have an adverse affect on the Korean firm.
According to analysts, an out-of-court settlement is expected for the ever extending IP case, which could hamper the prospects of both the companies.
Samsung along with Toshiba supplies chips for Apple iPad and iPhone, which accounted 5.8% of the Samsung’s sales in the first quarter of 2011.
Samsung and Apple have overtaken the market leader for the past decade, Nokia and are aiming for the top spot in the smartphone market.
Apple is far ahead in the sales of tablets than Samsung with 14 million iPad sales in the first half compared to Samsung’s 7.5 million tablets products for 2011.
Samsung is aiming a five-fold increase in its sales in 2011, betting on its new tablets to close the gap with Apple.