Apple is in talks with Samsung over component manufacturing for its upcoming Apple Watch, according to new reports.
It’s not yet clear whether a deal has finalised, but Business Korea said Apple ‘asked Samsung’ to supply the application processors for the Apple Watch, due for release early next year.
Striking a deal with a fledgling device like the Apple Watch could be very lucrative for Samsung, especially when sales are already tipped for 30 million units in 2015 alone.
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The Apple Watch’s chips are custom-built system-in-package chips, i.e. all of the computer architecture is fitted onto a single, tiny chip.
Apple’s new chip will be called the S1, and will come encased in resin for added protection.
Previous reports suggest Apple has already placed its order for S1 chips, albeit with an unknown firm, for somewhere in the region of 30-40 million units.
The possibility of Samsung building the S1 chip is unsurprising. Despite a chilly public-facing relationship, both Apple and Samsung have a long history of working together for fruit-stamped devices.
It’s now expected that Samsung will continue to produce Apple’s core A-series chip line-up that ships with iPhones and iPads, as well as manufacturing NAND flash storage and DRAM memory for the iPhone too.
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