As Apple reported it had doubled its profits from a year ago, with a 73 percent increase in revenue, Gartner Reserach unveiled a report stating the company has become the largest purchaser of semiconductors in the world.
Apple reported a net income of $13.6 billion on revenue of $46.3 billion, beating Wall Street expectations of $10.8 billion in profit on revenue of $38.85 billion. In comparison, the company posted a profit of $6 billion on revenue of $26.74 billion a year ago.
“We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs,” said Tim Cook, Apple’s chief executive, in a statement. “Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline.”
According to Garner’s research, Apple’s increase in profit and revenues meant an increase in spending on semiconductors: the company spent 34.6 % more on purchasing chips in 2011 then it did in 2010. This increase launched the firm ahead of traditional chip hegemon Samsung, and second place Hewlett Packard.
“Those companies that gained share in the smartphone market, such as Apple, Samsung Electronics and HTC, increased their semiconductor demand, while those who lost market share in this segment, such as Nokia and LG Electronics, decreased their semiconductor demand,” Masatsune Yamaji, principal research analyst at Gartner, said in a statement.
“Given the rapidly changing competitive structure of the IT and electronics industry, no semiconductor device vendor can afford just to monitor the requirements of the current market leaders,” Mr. Yamaji said. “Vendors need to be constantly looking for new market entrants who will, in turn, be tomorrow’s market leaders.”
Gartner’s findings reflect the conclusions of IHS iSuppli, which released a similar though less comprehensive report in June 2011.