Apple Inc may soon be the world's top chip purchaser, according to a report this week from iSuppli Corp.

The market research company noted that the "phenomenal" success of the iPad and iPhone is expected to make Apple the world's second-largest OEM semiconductor buyer in 2011, potentially positioning the company to become the world's top chip purchaser in 2012.

ISuppli estimated that Apple will spend $16.2 billion on semiconductors in 2011. That would put the company comfortably ahead of  Samsung Electronics Co Ltd, which iSuppli estimated will spend $13.9 billion on semiconductors in 2011, making it the third biggest chip spender. According to the iSuppli estimates, Apple would be nipping at the heels of the expected 2011 top spender, Hewlett-Packard Co, which is forecast to spend $17.1 billion on semiconductors.

"Leadership in semiconductor spending represents a position of prestige," said Min-Sun Moon, senior analyst for semiconductor spend and design at iSuppli, in a statement. "An advancement in the rankings means that a company has been successful in introducing new products and that it is allocating more dollars in research and development-two factors that, incidentally, feed innovativeness, as well."

In Apple's fiscal Q3 results released this week, the company touted its iPad and recently updated iPhone line. In the June quarter, the first quarter the popular tablet was available, Apple sold 3.27 million iPads. Apple's handsets remain popular despite iPhone 4 antenna issues and criticism for the company's response to the issues, and 8.4 million units were sold in Q3, up 61% sequentially.

"Apple's expected rise to No. 2-eclipsing Samsung and putting it within a hair's breadth of Hewlett-Packard-means that the company's investment in its new smart phone and tablet has paid off-and will continue to do so for some time to come," Moon noted.

ISuppli pointed out that Apple's spending has trended up in recent years. Against economic trends, Apple recorded a 13% expansion in semiconductor spending in 2009, while most OEMs posted declines. Apple's 2010 spending is expected to reach $12.4 billion, an expansion of 54%. ISuppli noted that that is the highest growth rate predicted for any company in 2010. Apple's 2011 spending levels are expected to expand an additional 30.4%.

ISuppli said that barring any unforeseen mergers and acquisitions by Hewlett-Packard, "Apple could well snag the top spot as soon as 2012, ousting a company that has held down the pinnacle since early this millennium."

By: DocMemory
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