Apple will be using Samsung chips in the next iteration of the iPhone, Bloomberg reports, despite the companies’ heated rivalry in the smartphone wars.
Apple has used Samsung chips in the past, but it contracted with Taiwan Semiconductor Manufacturing Co. for the iPhone 6 and iPhone 6 Plus. Legal disputes led Apple to stop using Samsung chips in 2011.
Bloomberg points out that the new Apple contract will help Samsung’s chipmaking business:
Winning this order from Apple will help the world’s second-largest chipmaker rebound against TSMC, which last year ended Samsung’s monopoly over contracts to make iPhone and iPad chips. Both manufacturers have boosted capital expenditures to gain business from Apple and Qualcomm Inc. in the more than $300 billion semiconductor industry.
While Apple is primarily a consumer hardware and software company, Samsung is a mega-conglomerate making everything from smartphones and processors to washing machines and televisions.
In many ways, Apple and Samsung are going in completely different directions. In its most recent earnings, Samsung saw net profit fall by 27% to 23.4 trillion won ($21.3 billion.) Apple, meanwhile, continues its rocket ride of spectacular profit, bringing in a record breaking $18 billion in profit.
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