Samsung plans to terminate LCD supply contract with Apple
Starting next year, Samsung will no longer supply LCD screens to Apple, as the rift between the rival technology companies continues to widen.
Samsung announced on Monday that it would terminate the existing contract with Apple and will no longer ship liquid crystal display panels, ending a longtime partnership between the two companies, The Korea Times reported on Monday. Citing an unnamed Samsung official, the report revealed that Samsung has already cut its portion of shipments to Apple, and beginning in 2013 it will stop shipping LCDs to Apple entirely.
The Korean electronics maker apparently plans to offset the loss of Apple as a customer by selling more displays to its own handset division, as well as retailer Amazon, which sells the Kindle Fire HD tablet.
The change will represent a major shakeup in Apple's supply chain, as the iPad maker bought more than 15 million LCDs from Samsung in the first six months of 2012. That made Samsung the largest LCD supplier to Apple, topping LG Display's 12.5 million screens and Sharp's 2.8 million.
However, Samsung reportedly shipped less than 3 million LCDs to Apple in the third quarter of 2012. In the current fourth quarter, Samsung's shipments are expected to drop to just 1.5 million.
Earlier this year, Samsung was said to be the only company that could produce high-resolution Retina displays for Apple's third-generation iPad. While Samsung was the only Retina display provider at the device's launch, LG and Sharp eventually joined in Apple's supply chain.
The relationship between Samsung and Apple has been unique, as the two companies are fierce competitors while Samsung has also been the largest supplier of components to Apple. Tensions between the companies boiled over last year, when Apple sued Samsung and accused the company of copying the look and feel of the iPhone and iPad. Since then, the number of lawsuits has proliferated across the globe.
Samsung's apparent plans to cease shipping LCD screens to Apple comes soon after a rumor indicated that Apple has become more "serious" about moving chip production away from Samsung. The custom chips found in Apple's iPhone, iPad and iPod touch are built by Samsung in Texas, but Apple plans to move production away from Samsung, potentially handing chipmaking responsibilities over to Taiwan Semiconductor Manufacturing Co.
Samsung announced on Monday that it would terminate the existing contract with Apple and will no longer ship liquid crystal display panels, ending a longtime partnership between the two companies, The Korea Times reported on Monday. Citing an unnamed Samsung official, the report revealed that Samsung has already cut its portion of shipments to Apple, and beginning in 2013 it will stop shipping LCDs to Apple entirely.
The Korean electronics maker apparently plans to offset the loss of Apple as a customer by selling more displays to its own handset division, as well as retailer Amazon, which sells the Kindle Fire HD tablet.
The change will represent a major shakeup in Apple's supply chain, as the iPad maker bought more than 15 million LCDs from Samsung in the first six months of 2012. That made Samsung the largest LCD supplier to Apple, topping LG Display's 12.5 million screens and Sharp's 2.8 million.
However, Samsung reportedly shipped less than 3 million LCDs to Apple in the third quarter of 2012. In the current fourth quarter, Samsung's shipments are expected to drop to just 1.5 million.
Earlier this year, Samsung was said to be the only company that could produce high-resolution Retina displays for Apple's third-generation iPad. While Samsung was the only Retina display provider at the device's launch, LG and Sharp eventually joined in Apple's supply chain.
The relationship between Samsung and Apple has been unique, as the two companies are fierce competitors while Samsung has also been the largest supplier of components to Apple. Tensions between the companies boiled over last year, when Apple sued Samsung and accused the company of copying the look and feel of the iPhone and iPad. Since then, the number of lawsuits has proliferated across the globe.
Samsung's apparent plans to cease shipping LCD screens to Apple comes soon after a rumor indicated that Apple has become more "serious" about moving chip production away from Samsung. The custom chips found in Apple's iPhone, iPad and iPod touch are built by Samsung in Texas, but Apple plans to move production away from Samsung, potentially handing chipmaking responsibilities over to Taiwan Semiconductor Manufacturing Co.
Comments
Quote:
Originally Posted by AppleInsider
However, Samsung reportedly shipped less than 3 million LCDs to Apple in the third quarter of 2012. In the current fourth quarter, Samsung's shipments are expected to drop to just 1.5 million.
Earlier this year, Samsung was said to be the only company that could produce high-resolution Retina displays for Apple's third-generation iPad. While Samsung was the only Retina display provider at the device's launch, LG and Sharp eventually joined in Apple's supply chain.
I'm sure Sharp and LG send their thanks.
As the biggest threat to Apple, who sells 100% of what they can manufacture, is not being able to manufacture in great numbers, I would say this is not only bad for Samsung.
Quote:
Originally Posted by John.B
I'm sure Sharp and LG send their thanks.
However the consumer won't, Sharp and LG have been riddled with quality issues. There still are issues with LG's Retina display for the macbook. Samsung's have none. Every launch they've been there to pick up the slack. I'm all for getting away but it will be very interesting to see launches go moving forward.
"I'm Fired?! Well I Quit!" LOL
I am absolutely stunned they would do this. I mean, it's not as if Apple has done anything to them.
With flexible displays the next big thing, and Samsung already way ahead on this, if Apple are unable to source such technology, they must produce it using any 3rd party IP or their own ideas that don't breach any of Samsung's display patents.
Quote:
Originally Posted by AppleInsider
Samsung's apparent plans to cease shipping LCD screens to Apple comes soon after a rumor indicated that Apple has become more "serious" about moving chip production away from Samsung. The custom chips found in Apple's iPhone, iPad and iPod touch are built by Samsung in Texas, but Apple plans to move production away from Samsung, potentially handing chipmaking responsibilities over to Taiwan Semiconductor Manufacturing Co.
So, in response to Apple changing to a different chip supplier, Samsung drops Apple screen supplies?
The cost of saving face, I guess.
Quote:
Originally Posted by Rayz
So, in response to Apple changing to a different chip supplier, Samsung drops Apple screen supplies?
The cost of saving face, I guess.
Actually Apple has been moving orders away from Samsung throughout the year; from some 15 million down to just over 1 million. By Q1 2013, all their LCDs will be from other suppliers. Samsung "terminating" some contract they had with Apple is moot. Long term, this hurts Samsung more than Apple; they are losing their biggest customer.
I hope Apple takes a dump all over Samsung. Apple practically jump-starts Samsung's mobile business and Apple gets back-stabbed for its pains. I just hope that Apple is able to get the quality and production rates from other companies when it comes to displays. I guess Samsung is very happy that its mobile business is doing so well and they don't need Apple's business anymore.
So much for the "firewall".
Didn't Panasonic announce they were getting out of the TV business with hopes of landing Apple as a customer for displays? Between them, LG, Sharp, and perhaps Sony, I don't think Apple is going to be hurt by this much.
Samsung is definitely cutting it's nose to spite it's face. Not a good strategy. The Android market is fickle. While Samsung owns them now, any one of the other vendors could become ascendent at any time. By putting all their eggs in one basket, that being to offset the loss of Apple by supplying more to their own mobile division, is a risky gamble at best.
Quote:
Originally Posted by Constable Odo
I hope Apple takes a dump all over Samsung. Apple practically jump-starts Samsung's mobile business and Apple gets back-stabbed for its pains. I just hope that Apple is able to get the quality and production rates from other companies when it comes to displays. I guess Samsung is very happy that its mobile business is doing so well and they don't need Apple's business anymore.
It's a fickle market unless you have an insanely loyal user base such that apple enjoys.
Samsung could get knocked off the top spot in the Android market at any moment, when that happens they will regret making enemies with Apple.
Quote:
Originally Posted by Tulkas
Didn't Panasonic announce they were getting out of the TV business with hopes of landing Apple as a customer for displays? Between them, LG, Sharp, and perhaps Sony, I don't think Apple is going to be hurt by this much.
Samsung is definitely cutting it's nose to spite it's face. Not a good strategy. The Android market is fickle. While Samsung owns them now, any one of the other vendors could become ascendent at any time. By putting all their eggs in one basket, that being to offset the loss of Apple by supplying more to their own mobile division, is a risky gamble at best.
I think the Panasonic rumor was caused by someone getting their story wrong. Apple is actually going to buy Panasonic.
*gasps* I'm just ..... shocked beyond belief.