Apple significantly reduces part orders from Samsung for new iPhone

Despite the crazy legal battles between Apple and Samsung, the two companies do a great deal of business with each other. Samsung makes a number of different components for Apple’s products including memory chips and display panels. However, things may be getting a little sour, as Apple is reportedly significantly reducing its iPhone 5 part orders from Samsung.
According to Reuters, there’s no doubt that Apple is indeed reducing orders from Samsung for iPhone 5 parts. However, this supposedly has nothing to do with deteriorating relationship between the two companies and is simply an effort to diversify Apple’s supply chain. The report claims that Apple has replaced Samsung with LG Display, Toshiba Corp, Elpida Memory and SK Hynix to make its memory chips and panels.
This may be a big hit for Samsung as it makes a ton of money from Apple. Digitimes predicted that this would happen back in May and caused Samsung to lose around $10 billion in market value. Frankly, the thought of Samsung losing business from Apple scares the hell out of investors.
I also don’t buy that this is simply a move to “diversify suppliers”. What’s happening with Samsung looks an awful lot like what happened with Google. Apple has been trying to rid Google out of its iOS platform by ditching Google Maps and even getting rid of the official iOS YouTube app. Is this Apple’s plan for Samsung as well?
The two companies have made a lot of money together and have helped each other a lot with business. But, it’s unclear how this whole battle beef will play out. We’ll keep you posted. Stay tuned.