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Nokia to Dump Samsung as Supplier, like Apple

By SiliconIndia   |   Thursday, 14 February 2013, 10:02 Hrs
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Bangalore: Apple’s business with Samsung was severely strained as the manufacturer secretly copied many of Apple’s designs under its Galaxy brand; a situation which soon can happen between Nokia and Samsung too, according to AppleInsider.

According to Garner, Nokia sold over 85 million phones in Q4 2012, nearly twice the number of iPhones Apple sold (43.5 million) and about 80 percent of the almost 107 million phones Samsung sold. The three of them account for more than half of phones sold in the quarter.

Samsung, the largest phone manufacturer in the world not only makes phones but, also memory chips, processors, displays and other components that other vendors use. In September 2007 Samsung launched its System LSI subsidiary for "iPhone effect analysis." The LSI had access to Apple's confidential semiconductor orders, but wasn't in charge of designing or building Samsung's phones, a fact highlighted in Apple's case against Samsung.

An unnamed Samsung executive told Reuters last fall that Samsung considered its supply contract with Apple a "separate issue from the litigation," and noted that this "strict internal firewall" had been erected to "avoid potential conflicts of interest" with its major customers. However, Apple isn't alone in being skeptical of the security of Samsung's "internal firewall."

An individual familiar with Nokia’s component orders from Samsung states that Samsung has, “a record of getting orders for next-gen components, then canceling the orders. And then they show up in a Samsung phone. When you see a Samsung 'bendy' OLED phone, as you surely will, you are looking at something that was stolen from Nokia."

Clearly Nokia must be considering their options and Samsung will not be bothered at the moment as their sales are at an all time high and the very lucrative Smartphone market is currently their dominant area but soon Samsung will have to find its own engineers to build new technology for its phones because Apple will surely not fall back upon them and Nokia will soon desert Samsung.

Read More: Nokia Made Android-Powered Smartphone On Its Way/ Nokia's New Affordable WP8 Phones Lumia 520, 720, Leaked

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