Apple is now the undisputed king of chip sales, according to a tech analyst.
The rise of Apple’s iPhone and iPad has left chip makers scrambling to improve the quality of their products.
Chip gaines in the United States rose in July to $4.9 billion, according the research firm IDC, the biggest one-day gain in a month.
Chip gaines have surged in Europe as well, and are on track to top $5 billion for the first time.
Apple has struggled to attract and retain talent in the chip industry, and its products have been plagued by technical glitches, according, a growing chorus of experts.
Apple declined to comment for this story.
But in a recent interview with the Financial Times, Chipmaker NXP’s Peter Baudis, who has studied Apple products for decades, said the chip company was “in a strong position” to become a leader in the market.
“Apple’s success in the past decade is not because of its technical superiority, it is because it is very intelligent about what it does,” Baudises said.
“Its products have had great customer loyalty, its products are well-made and are very good-looking, and the whole thing has a very high level of customer trust and confidence.”
But he said Apple’s failure to adapt to a changing market meant the company needed to adapt in order to compete.
“The reason we don’t innovate at all in the next few years is that Apple is not going to innovate,” he said.
Chip gains are the result of the increasing competition, he said, with companies like Nvidia and AMD offering cheaper chips to lower-end customers.
But analysts have been warning that the industry could continue to shrink if Apple is unable to innovate.
“You have to have innovation to make the next leap, so you have to be innovating,” said Adam Jonas, a research fellow at the Peterson Institute for International Economics.
“I don’t see Apple doing that, because it doesn’t have the talent.
It is not a mature technology, so the talent to innovate is very limited.”
While the technology landscape is evolving, Baudias said, the company still has a long way to go to become an international leader.
“This is a company with a lot of innovation, a lot to learn,” he told the FT.
“It’s a little bit of an underdog at the moment, and they don’t have a lot in the way of experience in the tech space.”