Nokia may follow Apple and dump Samsung as supplier

Samsung's (005930) rise as a top smartphone vendor may be costing it business as a component supplier. An unnamed hardware industry source told AppleInsider that Nokia (NOK) may be planning to follow Apple's (AAPL) lead in dropping Samsung as a supplier for smartphone parts to avoid boosting a company that has become a top competitor. While Samsung seems capable of surviving the loss of Apple's business, losing Nokia could put a squeeze on the company since Nokia is still the second-largest mobile phone vendor in the world. On the other hand, Samsung seems to think it can make up for lost business simply by supplying parts for its own Galaxy S and Galaxy Note devices, both of which have become premier smartphone brands and are some of the best-selling devices of the past year.

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