Why Apple Is Developing Its Own Chips

The video discusses Apple's strategic leverage over its suppliers, particularly in the semiconductor space, due to industry consolidation. Apple is developing its own chips to regain negotiating power, impacting suppliers like Imagination Technologies and Dialog Semiconductor. The reasons for Apple's in-house chip development include cost, quality, and timing, especially as they venture into new areas like augmented reality. Suppliers are advised to diversify, as seen with Qualcomm's deal with NXP, to reduce dependence on Apple.

What are some potential vulnerabilities for suppliers identified by analysts?

Why is diversification important for suppliers in the semiconductor industry?