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Apple and Samsung Continue their Gigantic Lead as Top Global Semiconductor Customers in 2016

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Apple and Samsung Electronics remained the top two semiconductor chip buyers in 2016, representing 18.2 percent of the total worldwide market, according to Gartner. Samsung and Apple together consumed $61.7 billion of semiconductors in 2016, an increase of $0.4 billion from 2015.



Masatsune Yamaji, principal research analyst at Gartner stated in the report that "This is the sixth consecutive year that Apple and Samsung Electronics have topped the semiconductor consumption table. While both companies continue to exert considerable influence on technology and price trends for the wider semiconductor industry, their impact has lessened due to falling expectations for future growth."


Apple decreased its design Total Available Market (TAM) in 2016 for the first time since Gartner started design TAM research in 2007, ending the year with 8.8 percent share of the market. The iPad did not sell well through 2016 and Apple also lost market share in the PC market.


Although Samsung Electronics experienced intense competition from Chinese original equipment manufacturers (OEMs) in various markets including smartphones, LCD TV and LCD panel through 2016, the company increased its design total available market (TAM) and came back as the global top design TAM company in 2016 with 9.3 percent share edging out Apple.


That's a little strange considering that Apple sold more smartphones than Samsung in Q4 2016. Then again, Apple's iPad sales fell by 3,000 in Q4 2016 which likely cost them the lead. In the end the two companies are so close it really doesn't matter.


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