With people snapping up iPhone 4s and iPads left and right, Apple is now the largest buyer of semiconductors among original equipment manufacturers (OEMs) for the first time ever, according to data from IHS iSuppli.
In 2010, Apple bought $17.5 billion worth of semiconductors, a 79.6 percent increase from the $9.7 billion it spent in 2009. That was enough to propel Cupertino from the number three spot in 2009 to number one last year, edging out HP and Samsung. Apple was number six in 2008, iSuppli said.
"Apple's surge to leadership in semiconductor spending in 2010 was driven by the overwhelming success of its wireless products, namely the iPhone and the iPad," Wenlie Ye, an IHS analyst, said in a statement. "These products consume enormous quantities of NAND flash memory, which is also found in the Apple iPod. Because of this, Apple in 2010 was the world's No. 1 purchaser of NAND flash."
Apple isn't likely to slow down; iSuppli expects Apple to spend $7.5 billion more on semiconductors than HP in 2011. In 2010, Apple topped HP by $2.4 billion.
Despite a rivalry between Apple and HP, iSuppli suggested that the two companies are "fundamentally different." Apple is focused on wireless endeavors at the moment; 61 percent of its semiconductor purchases went to the iPhone and iPad. About 82 percent of HP's semiconductor purchases, however, went toward desktops, notebooks, and servers.
As iSuppli pointed out, "this worked to Apple's benefit, with the smartphone and tablet markets massively outgrowing the computer segment in 2010."
Smartphone shipments jumped 62 percent in 2010, while tablets surged more than 900 percent, driven by the iPad. Global PC shipments, meanwhile, grew by a "relatively weak" 14.2 percent, iSuppli said.
The Apple eco-system has contributed to its success, according to iSuppli. The PC business does not put an emphasis on a family of products, but Apple leverages each of its devices to sell other devices. "Every Apple product is connected through iTunes/iOS and is synergetic with all other Apple products," iSuppli said.
Semiconductor manufacturers can likely expect more orders from Apple in the years to come. Apple chief Steve Jobs appeared before the Cupertino City Council Tuesday night to outline plans for a "spaceship"-like campus that will house 12,000 employees.