Why Apple took more chips than Samsung and Huawei

The company evaluated not only by the size of their annual income, number of employees or size of their market capitalization. In the international analytical company Gartner has come up with a rating, the position of the companies in which determined by their shares in total income of the global micro-electronics industry. Because in 2019, Apple took in the first place, it’s time to talk about it. And one more thing in the world of micro-electronics: one of the most important Apple suppliers are located in the United States, the company Qorvo, swallowed Decaware Irish company, world leader in the development and production of UWB (ultra-wideband chips for communications) chip that produces Apple U1.

Next in line to purchase the Apple chip A14

Judging from what top five consumer going is well known the ratings of other leaders in different segments of the IT industry – Apple, Samsung, Lenovo, Dell and Huawei, an indicator with a sufficiently high accuracy reflects the production volumes of companies – that is, the level of demand for their products. The range of chips produced in our day is huge, so data on the number of purchased chips do not make sense. And pay for the purchased chip company in different ways. For chips manufactured in its own factories, Samsung, of course, pays the cost. Apple also pays less because its negotiators (top-managers for the purchase of components) in the world go terrible rumors. Other companies are also involved in this are not angels, but in the ranking such subtleties are not taken into account. Because accurate data with detailed explanations of the origin of the source data available only to paid subscribers, and against Gartner has not yet put forward claims credible.

Apple buys millions of chips for their devices

Sales of processors from 2017 to 2020

In 2017, the total income of all producers of chips from their sale (the size of demand) made 420,4 billion dollars. In 2018, the demand and sales volume increased by 13.4% to 476,7 billion dollars. The fastest growing range of memory chips, both operational and flash. Other varieties of chips, generally produced under the order, but with the chips all memory types, the situation is different. At the end of 2017, there is a shortage of memory chips, in response to which their production has increased dramatically. In the end, in the second half of 2018 first half of 2019, because of their overproduction, the price of these chips has fallen to unprecedented low values. Alas – in the end of 2019, they started to grow again, and in addition, due to the recession, declining growth rates and other bad phenomena in the economy of different countries the demand for products of micro-electronic industry fell to 416,1 billion dollars. To a lower level than in 2017. In early 2020, the analysts were full of optimism, the year was supposed to be good: the introduction of 5Gsystems, laser scanning of the surrounding space, the rapid progress in the field of AI, but at the moment many of these companies removed their forecasts from the network.

Read also - why in iPhone 11 chip U1?

5 largest buyers of chips 2020

In 2017, 2018 and 2019 the composition of the five best in the world buyers of the chips remained unchanged. They changed only their position in the ranking. In 2017, the ranking looked like this (next to the company name indicated, the amount spent by her for the purchase of chips):

  1. Samsung Electronics – 40,408 billion dollars;
  2. Apple – 38,834 billion dollars;
  3. Dell – 15,606 billion dollars;
  4. Lenovo – 15,173 billion dollars;
  5. Huawei – 14,558 billion dollars.

Note the company that occupies the fifth position in the list. In the ranking of the 2018 Huawei rushed to the top of this (and many other ratings). In 2018, the ranking looked like this:

  1. Samsung Electronics – 42,512 billion dollars;
  2. Apple – 41,390 billion dollars;
  3. Huawei – 21,181 billion dollars;
  4. Dell – 19,131 billion dollars;
  5. Lenovo – 17,670 billion dollars.

In 2019, the market for micro-electronic industry collapsed. Least of all from his fall injured Huawei (reduced costs for the purchase of chips by just 1.8%), another Chinese company Lenovo has reduced them to only 9.2%. To determine the nationality of another company, almost does not reduce the cost of buying chips (this is Apple), I find it difficult. Just in case – joking. Costs Apple to buy chips in 2019 decreased by 12.0%. Samsung and Dell reduced costs by 21.4% and 15.0%, respectively. Apple was in first place.

Apple for the first time in a long time was in the first place

In 2019, the rating was as follows:

  1. Apple – 36,130 billion dollars;
  2. Samsung Electronics – 33,405 billion dollars;
  3. Huawei – 20,804 billion dollars;
  4. Dell – 16,257 billion dollars;
  5. Lenovo – 16,053 billion dollars.

Apple supplier bought the top chip maker in the world

Greensboro, North Carolina

Qorvo, the company with headquarters in the tiny town of Greensboro (population slightly less than 300 thousand people), in the state of North Carolina, was acquired for $ 400 million to the Irish company Decawave, the one that helped Apple develop the Apple chip U1, and which produces it. Apple U1 are close in feature set to the Decawave DW1000 from, but by design, they are completely different. In addition to UWB chips, Qorvo produces a piezo-electric wave filters, integrated circuits for cellular communications and a lot more. 2/3 of their income the company earns, fulfilling the orders of Apple and other customers even mentions the U.S. Department of defense.

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