Apple Has Become The World's Largest Chip Buyer

By Douglas Perry
published

No other company buys more semiconductors than Apple.

According to iSuppli, Apple purchased chips for $17.5 billion in 2010, which represents an 80% increase from $9.7 billion in 2009. The growth was strong enough to surpass HP as well as Samsung last year.

The main reasons for the massive growth is Apple's success in the smartphone and tablet space, which requires the company to purchase huge amounts of flash memory. iSuppli believes that Apple will continue to grow - and continue to outgrow other chip buyers. 61% of Apple's chip purchases in 2010 were related to the iPhone, iPad and iPod. In comparison, HP spent 82% of its chip purchases on desktop, server and notebook products.

HP is estimated to have spent $15.1 billion on semiconductors in 2010. iSuppli believes that HP's spending will contract in 2011, while Apple's spending will exceed $22 billion this year and top HP's spending by about $7.5 billion.

Douglas Perry
12 Comments Comment from the forums
  • Nesto1000
    Too many companies rely on HP/Dell computers for their workers and such... I don't see HP going that low...
    Reply
  • The Greater Good
    Well of course they are. You think Apple could produce anything themselves? Everything they sell has been built by everyone BUT Apple.
    Reply
  • Blessedman
    Ummm so does any computer manufacturer. Asus & HP being two exceptions I can think of (I am sure there are others, but not the norm). Unless Apple can keep their innovative streak alive, I see them being forced to become a software development house with some strong IP's. I can't see the iPhone becoming top dog again (without the amazing innovations ) unless they open up their iOS to other vendors to survive.
    Reply
  • jcurry23
    Not the kind of news I wanted to hear. I don't want Apple to be successful.
    Reply
  • AMD_pitbull
    So, comparing Apple to HP, Apple spent a little over 6 billion on desktops and laptops, and HP spent over 12. This article makes it sound like Apple is becoming more and more popular, but, the truth being, they're just in more markets. Spinning facts to make a company seem more successful than it is...TH, I was hoping for more out of you than that. How's LG doing? Or do they not count due to iSupply not wanting other companies in multiple markets included? .
    Reply
  • eddieroolz
    Tell me when Apple becomes the biggest chip producer.

    Then I'd be worried.
    Reply
  • JackFrost860
    if you look at the graph, thay where number one last year too!
    Reply
  • Yoder54
    The Greater GoodWell of course they are. You think Apple could produce anything themselves? Everything they sell has been built by everyone BUT Apple.
    Your implication is that Apple is one of the few computer manufacturers who does not produce their own CPU's. The only companies up there who even come close to producing most of their hardware are: Sony, Samsung, Toshiba, and Panasonic. Samsung being the top dog in that they have their hands in everything and are very diverse. Dell is the biggest joke up there, especially when Michael Dell tells us how Dell computers are all American and then outsources because he says American workers are lazy and lack talent.
    Reply
  • The Greater Good
    Yoder54Your implication is that Apple is one of the few computer manufacturers who does not produce their own CPU's. The only companies up there who even come close to producing most of their hardware are: Sony, Samsung, Toshiba, and Panasonic. Samsung being the top dog in that they have their hands in everything and are very diverse. Dell is the biggest joke up there, especially when Michael Dell tells us how Dell computers are all American and then outsources because he says American workers are lazy and lack talent.
    LOL. You're all like, "Others don't make their own hardware, just like Apple." Expect for the four you listed. The funny thing is, every company you mentioned does not call their products "magical, revolutionary" and have others build EVERY FRIGGIN component that goes into the final product. This is what Apple does. I think it's akin to lying.
    Reply
  • WR2
    BBQ, Ranch or Salt 'n Vinegar? So many tough decisions.
    Reply