The Korea Times is reporting that Apple will use an internally designed application processor in its upcoming iPhone 4G.
Samsung Electronics has so far been supplying APs for Apple's 3G iPhones, Samsung officials say.
"iPhones have been using Samsung Electronics-produced APs that were partially designed by Apple engineers. But Apple has decided to use its own AP for its 4G models," a high-ranking industry executive told The Korea Times, Monday.
"That's not good news at least for Samsung Electronics' system LSI business," he said, adding the company has partially proved its technology capability in the non-memory sector by supplying Apple.
"It's going to be OK for Samsung in terms of revenue growth in chips. But Apple's switch means Samsung is still a long way off becoming a top-tier semiconductor company for both memory and non-memory chips," an industry watcher said.
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