Apple Looks Ready to Drop Samsung's Chips

Apple Looks Ready to Drop Samsung's Chips

The following video is from Friday's installment of The Motley Fool's Weekly Tech Review, in which host Chris Hill and analysts Eric Bleeker and Jason Moser take a look at the biggest stories driving the tech sector this week.

In this segment, Eric looks at Apple's current contentious relationship with Samsung, and the possibility that Apple could be moving to a different chipmaker. Reports that Apple is moving to Taiwan Semiconductor have been simmering all week and on Friday night took on additional credibility, when The Wall Street Journal reported that the two companies had signed a deal for Taiwan Semi to manufacture Apple's chips.

Yet changing chip manufacturers is tough. As Eric explains, the next generation is so complex that only a handful of companies -- four, to be exact -- have the resources and technology to manufacture Apple's next chip lineup. That's left Apple with limited options. In the following video, Eric explains the difficulties of changing chip suppliers and Apple's overall attempts for supply-chain diversification.

The full video is available here.

As Apple investors have learned across the past year, companies dominating in mobile and winning investments don't always go hand-in-hand. Yet there is no shortage of opportunity remaining in smartphones and tablets, from both Apple and other companies in the space. Fortunately, The Motley Fool has released a free report on mobile named "The Next Trillion-Dollar Revolution" that dissects the mobile space. The report describes why this seismic shift will dwarf any other technology revolution seen before it and also names a company at the forefront of the trend. You can access this report today by clicking here -- it's free.

The relevant video segment can be found between 7:22 and 10:02.

The article Apple Looks Ready to Drop Samsung's Chips originally appeared on

Chris Hill, Eric Bleeker, CFA, and Jason Moser have no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published