Apple has seen its stock value almost halve from the top value reached a year ago. The growing competition in the smartphone industry and Apple’s dropping earnings are the key reasons for the stock drop. Its major parts supplier Samsung has become Apple’s major threat in the smartphone segment. Apple receives nearly 50% of its income from iPhones, and its iPhone profits are much greater than its overall corporate profits.
But Samsung has surpassed Apple in terms of progress and is now the globe’s major smartphone seller. Though Samsung makes fewer profits than Apple in smartphones, the Cupertino company seriously desires to end its reliance on Samsung. Samsung isn’t just the globe’s biggest cell phone seller but also the globe’s biggest storage firm and supplier of screens. Samsung generates around $5 billion in income from the sale of logic processors for Apple’s iPhones, iPads and iPods.
Apple pays almost $10 billion every year to its main rival, if you also add other parts like storage and screens. There’s never been such an unusual relationship in the technology industry. Apple has been wanting to lessen its reliance on Samsung for some time and made a vital decision to change its processor supplier to TSMC (TSM).