Samsung won’t fear Apple no more. Know why

The greatest rivals in the tech industry are now teaming up and rekindling their lost affair. Samsung Electronics will now manufacture main chip for the next iPhone and displays for other products by Apple.

While Apple will get an access to one of the biggest, sophisticated chip manufacturing operations in the world to overcome the competition, Samsung would get new orders for its core chipmaking group and a chance to make up for its inactive profit in mobile phones.

Nonetheless, Samsung will continue to make its own smartphones.

The rivalry between the two giants apparently begin to thaw since the war waged by Steve Jobs forced these comrades to end lucrative supply contracts and engage in costly legal battles.

The Economic Times reported that in August 2014, Apple Chief Executive Officer Tim Cook agreed to begin winding down the patent suits with Samsung, and the two companies are now teaming up again on new products.

Samsung is budgeting $14 billion for new plants and equipment to fulfil the requirements of its new client.

However, the partnership will not go down well for other companies, especially Taiwan Semiconductor Manufacturing Company and SanDisk.

As per the financial daily, on April 29, Samsung reported first-quarter earnings showing growth in every one of its component businesses. Meanwhile, TSMC, which made the main chip for previous versions of the iPhone, cut its spending plans.

Another main loser-SanDisk-that makes memory chips for iPhone, iPad, and Mac, would lose from the knot. It released a forecast on April 15 that fell short of analyst estimates. SanDisk cited lower prices, product delays, and loss of customers.

Analysts told ET that Apple was believed to be one of those customers, having turned to Samsung for the flash drives used in many newer Mac models.

An analyst at Ladenburg Thalmann said that playing against Samsung was never easy and took away SanDisk's business at Apple.

Apple was SanDisk's biggest customer as it contributed 19% of the chipmaker's revenue, according to data compiled by Bloomberg.

Now, the fallout could make it a canary in the manufacturing plant for companies in the industry that have similar relationships with the tech giant from Cupertino. Micron Technology, SK Hynix, AU Optronics, and TSMC all count Apple among their top three clients, and each competes directly with Samsung in their respective markets.