Samsung Tops Apple as Broadcom's Biggest Customer

Headnote

Sales to South Korea-Based Brand Now 17.3% of Total

TECHNOLOGY

Samsung Electronics Co. has surpassed Apple Inc. as Broadcom Corp.'s largest customer.

Samsung, the world's largest consumer electronics maker, accounted for $1 .3 billion of the Irvine-based chipmaker's record $8.01 billion in sales in 2012, according to the company's recently released annual report.

South Korea-based Samsung's total came to 17.3% of Broadcom's revenue, ending Apple's two-year run as the company's top customer.

Sales to Samsung grew from a 10% share in 2011, and they were likely driven by hot sales of the company's Galaxy S3 and S2 model smart phones.

Samsung last month announced that the Galaxy S3 model surpassed 40 million unit sales globally in its first 20 months on the market.

The strong S3 gains pushed sales of the Galaxy S series of smart phones beyond 100 million units, Samsung said, with the S2 model ringing up sales eclipsing 40 million units since its launch nearly two year ago.

Broadcom is known to have its Wi-Fi chips in both models, and its combo Bluetooth/receiver chip in the Galaxy S3 model, according to San Luis Obispo teardown specialists at ifixit.com.

The combo chip reduces power consumption by 40% to 50% compared to previous versions, according to...