The Korea Times is reporting that Apple  has cut Samsung out of producing its next-generation A7 chip. The Mac maker continues to diversify its component supplier base away from Samsung. Apple has already begun moving display sourcing to LG Display . The A7 business is reportedly going to Taiwan Semiconductor Manufacturing  and its 20-nanometer process. The transition could hurt Samsung, since it would be left with excess unused. Samsung has supposedly been trying to grow its business with NVIDIA  to mitigate the risk of losing some Apple business.

In the video below, Fool contributor Evan Niu, CFA, explains what it means for investors.

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


The article Apple Cuts Samsung Out originally appeared on Fool.com.

Fool contributor Evan Niu, CFA owns shares of Apple. The Motley Fool recommends Apple and NVIDIA. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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