Samsung is going to be producing the processors that are inside of Apple’s smartwatch that is set for launch in March. The Apple Watch is set to be a staple of Apple’s wearable tech, as well as a staple within the mainframe of Apple’s industry-leading personal computing technology. The Apple Watch, which is expected to lead the way within wearable tech, creating a piece that is more fashionably acceptable than other devices comparatively, as well as something that fits into the Apple family of devices, running a version of their iOS.
Apple had originally been aiming for between 30 and 40 million of the Apple S1 chips to be produced before the launch in March. However, that number has been significantly reduced down to roughly 10 million, due to the time constraints that now face Apple, as well as Samsung – who will be producing those chips. Samsung having less time to develop those processors, puts less stress on Apple in terms of what the expectation should be for launching the device. However, that ultimately will cut into the bottom line that the pieces could ultimately produce this fiscal year. That means the company has significantly scaled back their sales expectations for the Apple Watch.
Samsung will be producing the application processor that will be inside of the S1 chip. It’s a major piece of the S1 puzzle that consists of mobile DRAM, NAND flash, and circuitry to make touch input happen, as well as connectivity to things like Wi-Fi, as well as Bluetooth possible. The secondary portions of the S1 chip may not be produced by Samsung, which isn’t 100% certain yet. However, Samsung producing the processor is definitely a major step for a company that has had significant battles with Apple in the last several years. The very public battles that have taken place between the two companies is something that has been very vocal, and has actually cost both companies a significant amount of money in court fees as well as ad campaigns created to compete against each other.
At the end of the day, this is the first significantly public move that has been vocalized linking the two companies – which comes as a surprise to many.