Samsung to supply chips for next iPhone: reports

Jan 26, 2015, 6:29 AM EST
Pedestrians are reflected on a window displaying Samsung Electronics Co. logos outside a Samsung Partnershop retail store in the Central district of Hong Kong, China, on Wednesday, Oct. 29, 2014.

South Korea's Samsung Electronics Co Ltd will be the main supplier of processors powering Apple Inc's next iPhone, Maeil Business Newspaper reported via Reuters on Monday, citing unidentified sources in the semiconductor industry.

Samsung will be responsible for around 75 percent of the chip production for the next iPhone, the South Korean newspaper said.

The newspaper did not say how much the contract is worth and what other company will be supplying Apple. Samsung will make the chips from its factory in Austin, Texas, according to the report.

The popularity of Apple's flagship mobile remains steady, as the firm is expected to say this week that it has sold more iPhones in China than on its home turf in the US for the first time last year, highlighting the shifting power balance of the smartphone market.

According to CNBC, analysts estimate that the US tech group reached the turning point in iPhone sales after expanding its presence in China last year via a deal with China Mobile, the country's largest network operator, and after the release of the latest iPhone 6 in the country in October.

The iPhone's growing market share in China comes as Samsung, the global market leader by smartphone volumes, has stumbled and the region has seen the rapid rise of low-cost challenger Xiaomi.