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Apple Cuts Samsung Out

Friday - 4/12/2013, 8:00am  ET

The Korea Times is reporting that Apple  has cut Samsung out of producing its next-generation A7 chip. The Mac maker continues to diversify its component supplier base away from Samsung. Apple has already begun moving display sourcing to LG Display . The A7 business is reportedly going to Taiwan Semiconductor Manufacturing  and its 20-nanometer process. The transition could hurt Samsung, since it would be left with excess unused. Samsung has supposedly been trying to grow its business with NVIDIA  to mitigate the risk of losing some Apple business.

In the video below, Fool contributor Evan Niu, CFA, explains what it means for investors.

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