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IHS: Apple dominates electronics supply chain

IHS: Apple dominates electronics supply chain. Image courtesy of Apple.

Apple is not only the world's leading OEM in terms of semiconductor purchasing, but it is increasing its buying at a faster rate than other top firms, according to a report by IHS iSuppli.

The company is expected to buy nearly $28billion worth of semiconductors this year, up 15% from $24bn in 2011, which means it is dramatically outperforming no. 2 purchaser Samsung.

"It's well known that Apple has already conquered the smartphone and tablet segments — but behind the scenes the company is engaging in another kind of conquest: the dominance of the electronics supply chain," said Myson Robles Bruce, senior analyst at IHS. "Such a dominant position provides critical benefits, allowing one to dictate semiconductor pricing, control product roadmaps and obtain guaranteed supply and delivery."

Apple is set to increase its chip buying at a rate nearly three times faster than the next fastest rising purchaser, no. 8 ranked Canon, which will see a 4.6% increase this year.

The report also says that Apple is set to expand its lead in global chip purchasing in 2013, with growth of 12.3%, once again leading the Top 10 OEM semiconductor purchasers.

Simon Fogg

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