June 9, 2011 — Apple bought the most semiconductors of all original equipment manufacturers (OEMs) in 2010, largely to build iPhones and iPads, according to IHS iSuppli (NYSE: IHS) research. This is Apple’s first trip to the #1 spot, after being third in 2009 and sixth in 2008.

Rank   2009 2010 2011 1 Apple $9.7 $17.5 $22.4 2 Hewlett-Packard $10.3 $15.2 $14.8 3 Samsung Electronics $10.3 $13.9 $14.3 4 Dell $7.7 $11.0 $11.1 5 Nokia $7.7 $8.3 $8.1 6 Sony $6.2 $8.1 $8.3 7 Cisco Systems $5.3 $7.4 $7.5 8 Panasonic $5.2 $7.3 $7.0 9 LG Electronics $4.4 $4.9 $4.8 10 Toshiba $3.2 $4.6 $4.5

Figure. Top 10 OEM semiconductor buyers (Ranking by revenue in millions of US dollars). SOURCE: IHS iSuppli.

To be the largest chip consumer, Apple spent $17.5 billion on semiconductors, a 79.6% leap from 2009 ($9.7 billion spent). Apple’s spending spree shot it up 2 positions in OEM chip spending, and it was the highest rate of increase among the world’s top 10 OEM semiconductor buyers. In 2009, Apple came in behind Hewlett-Packard Co. (HP) and Samsung Electronics Co. Ltd. The year before, its semiconductor spending was 6th highest in the world. Also read: April semiconductor sales report from SIA

Apple’s wireless products pushed up its semiconductor spending, says Wenlie Ye, IHS analyst. Apple spent approximately 61% of its semiconductor budget in 2010 on wireless products. iPhones and iPads consume NAND flash memory notably, and this made Apple the top purchaser for NAND flash specifically.

2010 wasn’t a flash in the pan for Apple’s chip spending: IHS expects it to grow at an above-average rate for several years. In 2011, Apple will spend $7.5 billion more than HP (in 2010 it spent $2.4 billion more). This is partly due to the smartphone/tablet market growth, which massively outgrew PCs in 2010 and should continue this trend. 82% of Hewlett-Packard’s 2010 semiconductor spending went to computer products (desktops, notebooks, servers).

For more information, see Apple Overtaking HP as the Largest Semiconductor Buyer of the World at http://www.isuppli.com/Semiconductor-Value-Chain/Pages/Apple-Overtaking-HP-as-the-Largest-Semiconductor-Buyer-of-the-World.aspx?PRX

IHS iSuppli technology value chain research and advisory services cover electronic component research, device-specific application market forecasts, teardown analysis, consumer electronics market trends and analysis, display device and systems research, automotive telematics, and more. IHS (NYSE: IHS) covers energy and power; design and supply chain; defense, risk and security; environmental, health and safety (EHS) and sustainability; country and industry forecasting; and commodities, pricing and cost.

Also read: Apple wins solar patent: Notice

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