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Samsung denies termination of Apple LCD contract

post #1 of 39
Thread Starter 
A Samsung spokesman on Tuesday Korea local time refuted a report by The Korea Times that claimed the company would no longer be producing LCD screens for Apple products starting in 2013.

According to CNET, the spokesman said Monday's Korea Times report was "100 percent false," and noted that Samsung has requested the publication to revise its story.

"Samsung Display has never tried to cut the supply for LCD panels to Apple," the spokesman said.

The initial report gained traction as Apple has been weaning off Samsung-sourced components, most recently evidenced by the cutting of NAND flash orders bound for the first batch of iPhone 5 shipments. Samsung, which supplied Apple with 15 million LCDs in the first six months of 2012, reportedly shipped only 3 million LCDs to Apple in the third quarter and is expected to drop that number down to 1.5 million in the fourth quarter.

Samsung was previously the only company able to produce the high resolution Retina displays Apple uses for its third-generation iPad, but LG and Sharp both joined the supply chain months later.

Apple is expected to debut a small format iPad, dubbed the "iPad mini," at a special event on Tuesday, and reports point to LG and AU Optronics as being the main providers of those panels.
post #2 of 39
Will we need to wait until next year to know which version of this story is true?

Come on Apple, make things in the USA with your $100 Billion in cash.
post #3 of 39
Originally Posted by Smallwheels View Post
Come on Apple, make things in the USA with your $100 Billion in cash.

 

Again, insanely more complicated than that.

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Originally posted by Relic

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post #4 of 39
Quote:
Originally Posted by Smallwheels View Post


Come on Apple, make things in the USA with your $100 Billion in cash.

 

What's the incentive?

post #5 of 39
Quote:
Originally Posted by Quadra 610 View Post

 

What's the incentive?

 

That's exactly the problem. Every big company is asking for a 'handout' before willing to move jobs back from overseas. Why can't these big companies, earning huge profits, just do it? 

 

I say the US should just cut all the military overseas, so these companies cannot get protection from the military and then they'll know the true cost of operating overseas. Then they'll know it's actually a BARGAIN to have plants here in the US. 

post #6 of 39

I had been wondering when the "denial" would come.

post #7 of 39
Originally Posted by drobforever View Post

I say the US should just cut all the military overseas, so these companies cannot get protection from the military and then they'll know the true cost of operating overseas.

 

Uh, what? Do you really think that the ability of the US military to come knocking on the door a few minutes later REALLY has anything to do with companies and manufacturing?

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

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post #8 of 39
Quote:
Originally Posted by drobforever View Post

Quote:
Originally Posted by Quadra 610 View Post

What's the incentive?

That's exactly the problem. Every big company is asking for a 'handout' before willing to move jobs back from overseas. Why can't these big companies, earning huge profits, just do it? 

I say the US should just cut all the military overseas, so these companies cannot get protection from the military and then they'll know the true cost of operating overseas. Then they'll know it's actually a BARGAIN to have plants here in the US. 

The oil companies would never allow that.
post #9 of 39
'weening off?' 1rolleyes.gif
post #10 of 39
Originally Posted by anantksundaram View Post
'weening off?' 1rolleyes.gif

 

People peeing left and right! It's madness!

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

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post #11 of 39
Quote:
Originally Posted by drobforever View Post

 

That's exactly the problem. Every big company is asking for a 'handout' before willing to move jobs back from overseas. Why can't these big companies, earning huge profits, just do it? 

 

 

Huge profits were made by farming out cheap labour overseas.

You'll never get Americans to work for so little, which means lower profit margins for companies. 

And if you think Apple products are priced high now, imagine what they'd be if they were built in America.

post #12 of 39
Quote:
Originally Posted by Quadra 610 View Post

 

What's the incentive?


Benefiting one's countrymen. Contributing to the welfare of the nation. On site quality control. Lower shipping costs. Greater secrecy. Less piracy. More customers within the USA. Making the nation stronger helps its population earn more money thus allowing more people to purchase Apple products.

post #13 of 39

Shows how solid the Samsung firewall is!

post #14 of 39

Nobody is mentioning that, labor costs/availability of skills aside, the whole supply chain of components is built around Asia. It's way more complicated than having americans assemble the iPhone.

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post #15 of 39

Apple should stop using Samesung's parts. All information directly go to their cell phone development division also. LG's LCD is the world best. LG holds 29% of total global market share. Samesung is 18.9%, CMI 17.6%, AUO 16.7%.

post #16 of 39
Quote:
Originally Posted by satchmo View Post

 

Huge profits were made by farming out cheap labour overseas.

You'll never get Americans to work for so little, which means lower profit margins for companies. 

And if you think Apple products are priced high now, imagine what they'd be if they were built in America.

It's not wages. The US manufacturing infrastructure is gone, manufacturing skill is gone, people aren't be trained in sufficient quantity to bring these jobs back. Most education is now focused on business and finance degrees -- worthless. US industry for the most part makes money, not products.

post #17 of 39
1oyvey.gif
Quote:
Originally Posted by drobforever View Post

I say the US should just cut all the military overseas, so these companies cannot get protection from the military and then they'll know the true cost of operating overseas. Then they'll know it's actually a BARGAIN to have plants here in the US. 

That is the most ignorant comment on top of all ignorant comments i've read in a year. You seriously think the US military is out there to protect foreign companies like Samsung? Where's the FACEPALM emoticon?
post #18 of 39
Quote:
Originally Posted by Smallwheels View Post

Come on Apple, make things in the USA with your $100 Billion in cash.

You do know Apple's mobile processor is manufacured in Texas, USA, yes? Samsung got plant in the US too.
post #19 of 39
All these requests for apple to manufacture in the U.S won't work unless...
YOU GET THE U.S TO BAN ALL CHEAP IMPORTS LIKE ACER, SAMSUNG ETC.

when apple manufactured in the u.s (Jobs even made Next computers in the U.S) it was almost killed by consumers happily loading up on cheap asian P.Cs. Even the U.S government wouldn't buy expensive made in U.S.A Next computers.

Forcing apple to manufacture in the U.S without stopping cheap imports will just make Google, HTC, Samsung, Acer CEOs laugh their heads off, not to mention Amazon, Dell, Hp and Msft all of whom manufacture in Asia ...

want to apply pressure for U.S manufacturing, fine but make sure the pressure is EQUAL. Otherwise the Urban Legend (which 80% of the population seems to believe) that ONLY apple manufacutures overseas will persists. I've even read people saying "I don't buy apple because the manufacture in Asia. So I buy Samsung... " ????

There's enough crap already from politicians using Apple as the 'whipping boy' for jobs losts. (Also WEIRD that nobody condemns GOOGLE for giving stolen American I.P to asian companies like Samsung, HTC etc to compete with american companies like HP, Msft, Apple... )
post #20 of 39
Quote:
Originally Posted by Smallwheels View Post
...
Come on Apple, make things in the USA with your $100 Billion in cash.


You can't be as naive as your comment makes you appear to be.

Artificial intelligence is no match for natural stupidity.

 

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete...

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Artificial intelligence is no match for natural stupidity.

 

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete...

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post #21 of 39
Quote:
Originally Posted by Tallest Skil View Post

 

Again, insanely more complicated than that.

 

 

It isn't complicated. It just takes a commitment to do so. Prior to NAFTA everybody made things in the US including Apple. Revoke NAFTA and things will get made in the US again. 

post #22 of 39

Samsung should sue the Korea Times for putting out blatant lies.  Make sure they fire the reporter who claimed he got the information from a "reliable source."

post #23 of 39
Quote:
Originally Posted by Davewrite View Post

All these requests for apple to manufacture in the U.S won't work unless...
YOU GET THE U.S TO BAN ALL CHEAP IMPORTS LIKE ACER, SAMSUNG ETC.
when apple manufactured in the u.s (Jobs even made Next computers in the U.S) it was almost killed by consumers happily loading up on cheap asian P.Cs. Even the U.S government wouldn't buy expensive made in U.S.A Next computers.
Forcing apple to manufacture in the U.S without stopping cheap imports will just make Google, HTC, Samsung, Acer CEOs laugh their heads off, not to mention Amazon, Dell, Hp and Msft all of whom manufacture in Asia ...
want to apply pressure for U.S manufacturing, fine but make sure the pressure is EQUAL. Otherwise the Urban Legend (which 80% of the population seems to believe) that ONLY apple manufacutures overseas will persists. I've even read people saying "I don't buy apple because the manufacture in Asia. So I buy Samsung... " ????
There's enough crap already from politicians using Apple as the 'whipping boy' for jobs losts. (Also WEIRD that nobody condemns GOOGLE for giving stolen American I.P to asian companies like Samsung, HTC etc to compete with american companies like HP, Msft, Apple... )

 

 

The problem is not Apple. It is government legislation influenced by greedy corporate lobbyists. Again, since the founding of our Country all away up through the end of President Clinton's presidency the US imposed an import tariff on foreign goods made in Countries that 1) either had an unfair trade advantage (e.g. China with its subsidized work force and materials), or 2) Countries that opposed democratic ideals. These policies rightfully protected the American work force thereby protecting the American economy. It is a proven formula. If people are making good money, they buy things. Wealth spreads upwards, not downwards like many Republicans would have you believe. Roosevelt when taking the US out of the Great Depression proved this concept. Pay people decently, and they will feed the economy to the benefit of all. 

 

NAFTA was passed under the promise that more jobs would be created in the US. Instead, NAFTA allowed Chinese goods to escape trade caps and tariffs by passing freely into the US through Canada and Mexico. So companies then were able to take advantage of China's subsidized materials and work force without having to pay tariffs on imported goods. Moreover, the US gave companies tax breaks to move over seas. Keep in mind this all happened at the tail end of one of the greatest economies the US ever experienced. US manufacturers were making tons of money building right here in the US. This includes Apple who did in fact use to build many of its computers right here in the US. 

 

Picking on Apple, however, isn't the answer. Getting rid of bad legislation like NAFTA and tax breaks for building overseas is what first needs to happen. Next, getting corporate lobbyists out of politics needs to happen as well because US corporations now consider themselves to be international companies and they are not particularly patriotic to the US. 

post #24 of 39
Quote:
Originally Posted by Smallwheels View Post


Benefiting one's countrymen. Contributing to the welfare of the nation. On site quality control. Lower shipping costs. Greater secrecy. Less piracy. More customers within the USA. Making the nation stronger helps its population earn more money thus allowing more people to purchase Apple products.

 

 

All true. Henry Ford certainly believed that. When the farmers were suffering through the great depression, Ford figured out a way to buy product from the farmers to help them out so they could buy more of his trucks. So, he had the farmers grow soy, which was turned into fabric. This type of thinking benefited everybody. A strong economy requires the whole population to be doing well. 

 

 

Still though, Apple would be at a severe competitive disadvantage if the laws that essentially overnight made it beneficial to move manufacturing overseas aren't changed. Moreover, another problem now is Apple buys a lot of the parts from third parties who are foreign companies building overseas. Like the automobile industry in Detroit, most of the big three's manufacturing operations along with third party part manufacturers are all located in the same area to cut down on shipping and make coordination easier. The same is true in asia, many of the parts Apple uses from the various companies are all produced close to one another. 

 

The US economy will never recuperate without a strong manufacturing base. Prior to manufacturing moving to China, China's economy stunk. 

post #25 of 39
Quote:
Originally Posted by Smallwheels View Post

Will we need to wait until next year to know which version of this story is true?
Come on Apple, make things in the USA with your $100 Billion in cash.

 

Quote:
Originally Posted by Tallest Skil View Post

 

Again, insanely more complicated than that.

 

Quote:
Originally Posted by Quadra 610 View Post

 

What's the incentive?

 

The needed incentive is to not pay tax TWICE on the money that is outside the USA. The profits have already been taxed by the country in which it was earned. Right now the USA government wants to tax it again when brought into the USA. Were the government drop that requirement, most of Apple's money, which is sitting outside the USA, could be brought home and invested in infrastructure here. 

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #26 of 39
Quote:
Originally Posted by Constable Odo View Post

Samsung should sue the Korea Times for putting out blatant lies.  Make sure they fire the reporter who claimed he got the information from a "reliable source."

Samsung, through its corruption of the SK courts and government officials, could have this reporter "disappeared" if that is what they want.

Given that, the "leaked" story could be a way for Samsung to fire a warning shot to Apple.

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #27 of 39
It is just a batch of displays. Obviously they will sell to any decent buyer. Its Apple's doing. They set screen technical standards that multi-suppliers are able to adhere to. Obviously this gives Apple more power over supplies and cost. If Samsung can sell at a low appealing price they will surely still supply.
post #28 of 39
Quote:
Originally Posted by Smallwheels View Post

Will we need to wait until next year to know which version of this story is true?
Come on Apple, make things in the USA with your $100 Billion in cash.

 

 


Will you still support this if their gross margins suffer and the stock comes crashing down?

post #29 of 39
Quote:
Originally Posted by TBell View Post

 

 

All true. Henry Ford certainly believed that. When the farmers were suffering through the great depression, Ford figured out a way to buy product from the farmers to help them out so they could buy more of his trucks. So, he had the farmers grow soy, which was turned into fabric. This type of thinking benefited everybody. A strong economy requires the whole population to be doing well. 

 

 

Still though, Apple would be at a severe competitive disadvantage if the laws that essentially overnight made it beneficial to move manufacturing overseas aren't changed. Moreover, another problem now is Apple buys a lot of the parts from third parties who are foreign companies building overseas. Like the automobile industry in Detroit, most of the big three's manufacturing operations along with third party part manufacturers are all located in the same area to cut down on shipping and make coordination easier. The same is true in asia, many of the parts Apple uses from the various companies are all produced close to one another. 

 

The US economy will never recuperate without a strong manufacturing base. Prior to manufacturing moving to China, China's economy stunk. 

I'd argue that Apple is doing pretty much what your Henry Ford example highlights.  Apple has been building huge (for them) databases around the US which creates construction jobs, building a huge "spaceship" campus which means more construction jobs, hiring more employees for the new campus, opening new Apple Stores (despite the fact that other US retailers are taking a beating and shrinking their staff and/or staff's pay) which means more jobs in a down job market segment and last but not least creating an accessible ecosystem - 1) App Store: has not only helped independent developer and hobbyists to monetize their work much more easily and add to their portfolios to gain employment in the new US economy, but also caused a big run of major companies wanting their own apps which requires hiring more employees in-house or contracting out the work to smaller developer firm who in turn have to hire more workers, 2) iTMS: has helped hundreds of independent musicians by aiding them in selling their music without the need of an almighty record contract supplementing their performance fees and requiring these musicians to hire hundreds of freelance artists to work on "album" artwork, etc., 3) iBooks: Apple has put out an app that is dead simple to use for independent writers to create and sell their works without the need for a publisher (see #2) and 4) iTunes U: has allowed millions of Americans to gain supplemental education and skills from classes at top ranked Universities and the more you know, the more you earn

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post #30 of 39
Quote:

Samsung, Mr. Newman said, may be better off with customers that don’t apply the pricing and margin pressure that Apple can because of its huge purchase volumes. “Since Apple is the worst possible customer to imagine in terms of requirements and willingness to pay, I believe long term they are better off without Apple,” he said of Samsung. “Furthermore, longer term an Apple without Samsung’s components will be less able to compete in the marketplace, which further benefits Samsung.”

 

http://blogs.wsj.com/digits/2012/10/23/samsung-havent-cut-lcd-supply-for-apple/
 

"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

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post #31 of 39
Quote:
Originally Posted by Smallwheels View Post

Will we need to wait until next year to know which version of this story is true?
Come on Apple, make things in the USA with your $100 Billion in 

 

Not sure why we are paying so much attention to the KoreaTimes.   It seems like they are making up sh*t a bit too often..   Not too long after Galaxy S2 was released in the US, the Koreatimes announced that Samsung was to releases Samsung's flagship smartphone Galaxy S4 in March of next year - which was quickly denied by Samsung.   There was also another embarrassing report about Putin's daughter marrying a son of South Korean admiral, which for a short while had everyone scratching their heads. 


Edited by tooltalk - 10/23/12 at 2:03pm
post #32 of 39
Quote:
Originally Posted by drobforever View Post

 

That's exactly the problem. Every big company is asking for a 'handout' before willing to move jobs back from overseas. Why can't these big companies, earning huge profits, just do it? 

 

I say the US should just cut all the military overseas, so these companies cannot get protection from the military and then they'll know the true cost of operating overseas. Then they'll know it's actually a BARGAIN to have plants here in the US. 

 

I agree that the US should cut its oversea military spending, but I just don't see how these two are related..  

post #33 of 39
Quote:
Originally Posted by drobforever View Post

 

That's exactly the problem. Every big company is asking for a 'handout' before willing to move jobs back from overseas. Why can't these big companies, earning huge profits, just do it? 

 

I say the US should just cut all the military overseas, so these companies cannot get protection from the military and then they'll know the true cost of operating overseas. Then they'll know it's actually a BARGAIN to have plants here in the US. 

 

Well, that would be nice..  The US dollar as the world's reserve currency without the US military to back it up? 

post #34 of 39
Quote:
Originally Posted by Smallwheels View Post


Benefiting one's countrymen. Contributing to the welfare of the nation. On site quality control. Lower shipping costs. Greater secrecy. Less piracy. More customers within the USA. Making the nation stronger helps its population earn more money thus allowing more people to purchase Apple products.

 

I don't see how this makes any sense.   A lot of US companies, including Apple and GM, now make more money from oversea sales than US domestic sales.  I don't see why/how bringing back cheap menial wage jobs would help.   Why would you want to promote "great secrecy"?  

post #35 of 39

TechCurch wrote that BOTH companies would come out of a split in business relations unscathed.
That's complete RUBBISH!

We all know Samsung would most definitely come out of it worse than Apple.

Where as Apple may suffer a bit from failing to meet demand for their products for a short while while they secure alternate component suppliers, Samsung would most definitely NEVER find any single high volume customer to replace Apple.

post #36 of 39
Quote:
Originally Posted by Smallwheels View Post

Will we need to wait until next year to know which version of this story is true?
Come on Apple, make things in the USA with your $100 Billion in cash.

Will the real lier please step forward.   Coming from Korea, multiple lies are not unexpected.

 

Yes Apple could support a company to start up an LCD plant.   Like helping LG set up a USA  LCD plant.

But getting into component manufacture is not something Apple should do directly.

post #37 of 39

As far as many US companies making more sales overseas than in the USA, it doesn't matter. Apple uses many factories around the world. They could make a factory in the USA to handle North America and perhaps South America. They could continue to utilize the Asian factories in the same way or purchase those companies. China is a huge market that Apple has yet to crack. There will always be plenty of jobs to go around.

 

Apple could just build stuff in the USA. There is no real barrier to this happening other than them wanting to maximize their profits over benefiting the USA. I believe that people more interested in Apple profits than helping the USA would sell their stock before the perceived value of it went down, if it went down. Stock trading stopped being about actual value decades ago. Now stock trading is about perceived value. The true value of a company are it's workers and intellectual property. The physical plant is just stuff these days.

 

Apple needs to start with assembling things here. Once that begins suppliers will do all they can to get their production closer to Apple. From there Apple could ramp up the more difficult production and then manufacturing. It won't happen in a year but it could take as little as five years. It just has to start. Buying parts from a foreign company that makes them in Texas is a start. Apple can do better by taking the step to assemble things in the USA.
 

post #38 of 39
Quote:
Originally Posted by BARCODE View Post

TechCurch wrote that BOTH companies would come out of a split in business relations unscathed.
That's complete RUBBISH!

We all know Samsung would most definitely come out of it worse than Apple.

Where as Apple may suffer a bit from failing to meet demand for their products for a short while while they secure alternate component suppliers, Samsung would most definitely NEVER find any single high volume customer to replace Apple.

 

You obviously dont understand that there are more competitors out there than just Apple.

 

Open your mind and look outside the box.

 

It's not just Techcrunch

 

http://blogs.wsj.com/digits/2012/10/23/samsung-havent-cut-lcd-supply-for-apple/

"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

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"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

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post #39 of 39
That Cambridge Raspberry Pi is now being made in the UK. So final assembly can certainly be accomplished at home and at low cost.
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