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Samsung to Cease Providing LCD Panels to Apple in 2013
The Korea Times reports that the deteriorating relationship between Apple and Samsung that has seen the two companies reducing their component supply deals is now extending to LCD panels, with Samsung reportedly ending supplies of the panels to Apple next year.
Samsung is reportedly not involved in LCD production for the "iPad mini", with LG Display and AU Optronics said to be handling component production. And with Apple reportedly cutting back on memory orders from Samsung and now designing its own A-series chips while using Samsung simply as a contract foundry, it seems clear that Apple is steadily reducing its reliance on Samsung as the two companies have continued to face off both in the marketplace and in courtrooms around the world.
The Cupertino, California-based firm has been lowering its reliance on Samsung-manufactured displays for use in its popular i-branded devices as it is leveraging its influence to source components from Samsung’s rivals attracted by better pricing.The report claims that Samsung shipped approximately 15 million LCD panels to Apple in the first half of 2012, with the pace falling to 3 million panels in the third quarter and expected to drop to 1.5 million in the fourth quarter as Apple has shifted to other suppliers.
“We are unable to supply our flat-screens to Apple with huge price discounts. Samsung has already cut our portion of shipments to Apple and next year we will stop shipping displays,” said a senior Samsung source, asking not to be named, Monday.
Samsung is reportedly not involved in LCD production for the "iPad mini", with LG Display and AU Optronics said to be handling component production. And with Apple reportedly cutting back on memory orders from Samsung and now designing its own A-series chips while using Samsung simply as a contract foundry, it seems clear that Apple is steadily reducing its reliance on Samsung as the two companies have continued to face off both in the marketplace and in courtrooms around the world.
Tag: koreatimes.co.kr
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83 months ago
Not good - considering that the LG retina Macbook Pro displays have serious image retention problems - while the Samsung ones do not...
83 months ago
Most people probably don't realize that this hurts Apple more than Samsung. Bad business move by Apple.
83 months ago
In the end this is probably hurting Samsung more than Apple
Oh come on, you all know that Samsung makes great displays. Those LG retina displays being churned out for the 15" rMBP have image retention issues whereas those made by Samsung do not.
Doesn't hurt Apple?? Seriously??
83 months ago
This is not good news for Apple. Samsung create great technology and are leaders in the market when creating core stable technology, unlike many of their competitors. LG are a cheap alternative and a company that has only ever followed.
Apple need to learn how to work with other companies. They have too many enemies and cannot do it all themselves. Apples history has proven this many times over.
Apple need to learn how to work with other companies. They have too many enemies and cannot do it all themselves. Apples history has proven this many times over.
83 months ago
If this will allow Apple to increase their profit margins, I'm totally in favor of it!
Way to go. I was thinking the same thing. What matters most to all of us consumers is Apple's profits. Along those lines, how about this: why don't we all just start sending Apple a monthly check for nothing... so that Apple can book it as pure profit. They could book 100% profit margins on those "sales" and really fatten up their cash reserve and exec bonuses.
Similarly, I was thinking maybe they could pull even more hardware out of stuff they produce but keep the typical pricing the same (or raise it). Then we could all rally against those who gripe about getting less inside by telling them they can buy external equipment and hook it up. Again, including less but charging the same or more would fatten Apple's profits. And that's paramount to us consumers.
And for what Apple does leave inside new stuff, could they please use even more proprietary connectors, etc (often with no tangible benefit beyond Apple service lock-in)... so that we pretty much have to do business with Apple when things fail or need upgrades? I enjoy some of the cheerleaders here offering "don't like it, don't buy it" and "99% of people never want to upgrade anyway" and so on. What's important is having only one source of repair/upgrades- Apple- and paying up for adapters to link to industry standards... and paying up for third party hardware that had to license proprietary connector technology from Apple. We just love maximizing Apple's profits.
:rolleyes:
83 months ago
This is going to hurt both Apple and Samsung, unless Apple can find a better display manufacturer! Samsung is great at display and memory/storage. Leaving them was like leaving Google Maps without having a superior product/manufacturer ready to replace.
Ugh, the both of you kids need to grow up and play well together!
Ugh, the both of you kids need to grow up and play well together!
83 months ago
Thank goodness I got my rMBP with a Samsung SSD and LCD. Good luck with those slow-with-FileVault/compressed files toshiba ssds and image retention lg screens.
83 months ago
If Apple avoids using Samsung merely because of the IP cold war between the two companies, then it certainly hurts Apple. Having fewer component manufacturers to negotiate with reduces Apple's bargaining power, may increase component supply costs, and could limit Apple's access to the best available components. I, for one, hope that this is not true.
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