Apple outspent Samsung on semiconductor purchases by more than $8 billion in 2013, as it snapped up more chips than any other company in the technology business.
According to IHS Technology, Apple spent $30.3 billion on semiconductors alone in 2013, compared to the $22.8 billion that Samsung spent for components. Hewlett-Packard, Lenovo, and Dell rounded out the top five.
Why is this important? Not only does it demonstrate the relative complexity and cost of the components that end up in Apple?s devices, but it also indicates the importance of what analysts call a vertically integrated model: Samsung?s number does not include components that it ?bought? from other Samsung divisions inside the Korean giant. On those components, such as flash memory, for example, Samsung could avoid paying for the profit margin for those suppliers, IHS noted. (Granted, Apple has racked up billions in profits with products that specifically avoid the low-end market.)
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