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.
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.
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.
It's just as well, Samsung have a huge conflict of interest. No way Samsung could avoid copying Apple's designs before Apple even delivers a new product.
Obviously Apple was already removing component production away from Samsung.
I'm sure other Apple suppliers are happy and may even come out with components better than Samsung's.
Apple is a business, this is a business decision. If it is in Apple's interest to do more business with Samsung in the future, they will. Just like Apple still deals with Microsoft, Adobe and Intel despite past competition and legal wrangling. I don't see a competent manager wasting time thinking up ways to screw with a major company with cutting edge technology that may be a future vendor.
Increased quality issues and yield issues is whats in store for Apple from now on.
Good luck. They are gonna need it.
LG has also said their profit margins from supplying components to Apple is hair thin.
Apple is the ultimate loser in this. No one wants to jump on board a customer who demands hair thin profit margins. Samsung, on the other hand, has its own division to feed its production. Also, they can offer a package deal to other OEMs with DRAM + NAND FLASH + SOC CHIP + DISPLAY all bundled into one at a comparatively lower price than if they had bought them seperately, something no other company can do.
You should get some perspective. Sharp has been making LCDs much longer than Samsung. Further, unlike Samsung, it actually builds all its own displays. In low to mid end televisions, Sharp's displays kick Samsung's butt. Where Sharp needed help was being able to produce smaller screens in the quantity companies like Apple needs. Some people might have forgotten, but Apple invested heavily in Samsung's display business years ago to help Samsung build the manufacturing capacity up to where it is at now. Apple and Foxconn are now doing the same with Sharp.
As far as profit margin being thin, that might be true, but it adds up over millions of units. Further, it is so thin that Panasonic wants to stop making TVs and focus just on building displays for companies like Apple. Whatever the case might be, Apple isn't hurting from the profit margins being thin.
As far as Samsung's own divisions to feed its own production is concerned, you might be right, but each of Samsung's divisions are treated as different companies. So one Samsung division sells the product to the other divisions. Sure there is some discount built in there, but the division that is selling the product is trying to make a profit. Moreover, Samsung's top end phones often times cost more than Apple's.
You should get some perspective. Sharp has been making LCDs much longer than Samsung. Further, unlike Samsung, it actually builds all its own displays. In low to mid end televisions, Sharp's displays kick Samsung's butt. Where Sharp needed help was being able to produce smaller screens in the quantity companies like Apple needs. Some people might have forgotten, but Apple invested heavily in Samsung's display business years ago to help Samsung build the manufacturing capacity up to where it is at now. Apple and Foxconn are now doing the same with Sharp.
As far as profit margin being thin, that might be true, but it adds up over millions of units. Further, it is so thin that Panasonic wants to stop making TVs and focus just on building displays for companies like Apple. Whatever the case might be, Apple isn't hurting from the profit margins being thin.
As far as Samsung's own divisions to feed its own production is concerned, you might be right, but each of Samsung's divisions are treated as different companies. So one Samsung division sells the product to the other divisions. Sure there is some discount built in there, but the division that is selling the product is trying to make a profit. Moreover, Samsung's top end phones often times cost more than Apple's.
can you backup your statement "Apple invested heavily in Samsung" with legitimate sources? or are you talking about the measly $100M Samsung received in late 1990's?
That sounds a bit nonsensical - especially given that most Apple displays until Apple's new iPads were made by LG. (And LG is still LOSING money)
Sharp is also already *close* to being a wholly owned subsidiary of Apple and Foxconn ...
last i heard, Foxconn has a ten (10) percent / $800+ million stake in Sharp Corporation. Apple would have to invest about $3.5 billion to make Sharp Corporation a subsidiary of Apple / Foxconn.
Then simply Google "broken samsung tv" and get countless hits!
... which does absolutely nothing to strengthen your opinion. if you type in 'broken apple iphone' in Google or Bing you'll get many more hits than the Samsung query. both Samsung and Apple make quality products, and from both companies some items don't perform up to spec.
Samsung has been making mobile devices for at least a full decade longer than Apple and has sizable 3G/LTE patent pools. Samsung wasn't even a major player in the US smartphone market until last year - HTC was.
I'm not quite sure how Apple is going to work around this - there is really nobody out there big or reliable to enough to meet Apple's demand.
I guess you missed the news earlier this year when Apple announced that they were prepaying $3.9 Billion to their suppliers.
Much of this money was being fronted to Samsung's competitors who needed investment in their LCD factories.
I don't think Apple is worried, they have been planning this for a few years.
Build your own stuff Apple. Actually make something instead of just designing things. What could Apple do with one-hundred-billion dollars? It could create all of the factories it needed in the USA and control them with total secrecy. How much has Apple lost to other companies copying products? If Apple had manufactured all of their own products then that copying would have been minimized. The money lost could have gone into USA based factories and employees.
It perhaps could build the factories in the US, but they'd have to bring Chinese workers here to do the actual work. The US does not have trained workers; we graduate MBA's and bankers and financial advisors not folks who can make stuff. And who's going to train enough tool and die makers and build tool and die factories to build the components that go into the iDevices?
Where is Apple going to find skilled high school students who will eventually learn the engineering to learn the skills to build the plants that build the machines that make the tools that make the machines that make the components that are assembled into the iDevices.
Apple's $100B is far less then 1% of the amount of money necessary to build the infrastructure to start the process of bringing these job into the US. How much time would all this take? At least 2 generations or about 40 years. That is the number of years the US has been neglecting basic infrastructure and education in the useful arts. The last generation that had these skills in sufficient quantity was the WWII generation; by the mid-1970's this generation was reaching their 60th year, and retiring with comparatively few able to replace them.
Doesn't matter, just commenting that OEMs are moving beyond ~330 ppi... HTC have always been the best Android manufacturer, and once again they're leading the way...
Anyhow, S-LCD was a Sony/Samsung joint venture, and now I believe Samsung are the owners. Samsung products might suck, but their manufacturing is great - they make some of the best memory, SSDs, and various other parts...
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.
According to Anandtech, Samsung is bailing out because Apple was trying to get better pricing from Samsung (based on what they get from other suppliers), and Samsung claims they cannot compete under such pricing (while keeping quality?).
If true, here might be a reason why LG and Sharp have more quality issues.
This will be interesting on both ends - to see how will Apple overcome suppliers change in terms of volumes and quality, and what will Samsung do with additional manufacturing capacity. I'm expecting them to become even more aggressive with releasing new products. Anandtech has a Dailytech news about new Google 10" tablet with 2560x1600 resolution. Cannot open link from my office right now (http://www.dailytech.com/article.aspx?newsid=27995) but wouldn't be surprised Samsung is behind that screen...
All that being said. We had some issues with Samsung's monitors at work, as well as some of my colleagues had at home. Last 4 Samsung monitors dead lived just through their 3 year warranty and died within a few months after that. Coincidence it could be, but... as the old saying goes, bitten by the snake, scared by a lizard. Majority of our office monitors are Viewsonics nowadays, and I cannot say our office screen reliability went down at all. In fact we're still to replace any of our Viewsonics (and some are over 4 years old). I'm personally using LGs at home, both TVs and monitors, and can't find a complain, at least not for the money invested. Based on that humble experience of mine, I'd be surprised if this shift causes any problems to Apple.
It's just as well, Samsung have a huge conflict of interest. No way Samsung could avoid copying Apple's designs before Apple even delivers a new product.
Obviously Apple was already removing component production away from Samsung.
I'm sure other Apple suppliers are happy and may even come out with components better than Samsung's.
Well, they couldn't compete with Samsung when they were financially better off back in the 90's. Why are they going to all of sudden make *better* products now?
Everyone in the display business is losing money - except for Samsung. Everyone in the semi business (memory) is losing money - except Samsung and Toshiba.
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'd take a Sharp display over a Samsung any day. Far superior.
Doesn't matter, just commenting that OEMs are moving beyond ~330 ppi... HTC have always been the best Android manufacturer, and once again they're leading the way...
Anyhow, S-LCD was a Sony/Samsung joint venture, and now I believe Samsung are the owners. Samsung products might suck, but their manufacturing is great - they make some of the best memory, SSDs, and various other parts...
I think Sony Mobile Display is still in business - in fact, it is now part of Japan Display LTD. HTC is moving from Samsung because of the AMOLED shortages (caused by the growing internal demand from Samsung Mobile).
Comments
First Samsung shoots itself in the foot, then amputates its own leg, LOL!
Samsung sucks!
Quote:
Originally Posted by AppleInsider
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.
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.
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.
It's just as well, Samsung have a huge conflict of interest. No way Samsung could avoid copying Apple's designs before Apple even delivers a new product.
Obviously Apple was already removing component production away from Samsung.
I'm sure other Apple suppliers are happy and may even come out with components better than Samsung's.
Quote:
Originally Posted by Constable Odo
I hope Apple takes a dump all over Samsung.
Apple is a business, this is a business decision. If it is in Apple's interest to do more business with Samsung in the future, they will. Just like Apple still deals with Microsoft, Adobe and Intel despite past competition and legal wrangling. I don't see a competent manager wasting time thinking up ways to screw with a major company with cutting edge technology that may be a future vendor.
Quote:
Originally Posted by Galbi
With slimmer profit margins.
Apple just got Samsunged.
Increased quality issues and yield issues is whats in store for Apple from now on.
Good luck. They are gonna need it.
LG has also said their profit margins from supplying components to Apple is hair thin.
Apple is the ultimate loser in this. No one wants to jump on board a customer who demands hair thin profit margins. Samsung, on the other hand, has its own division to feed its production. Also, they can offer a package deal to other OEMs with DRAM + NAND FLASH + SOC CHIP + DISPLAY all bundled into one at a comparatively lower price than if they had bought them seperately, something no other company can do.
You should get some perspective. Sharp has been making LCDs much longer than Samsung. Further, unlike Samsung, it actually builds all its own displays. In low to mid end televisions, Sharp's displays kick Samsung's butt. Where Sharp needed help was being able to produce smaller screens in the quantity companies like Apple needs. Some people might have forgotten, but Apple invested heavily in Samsung's display business years ago to help Samsung build the manufacturing capacity up to where it is at now. Apple and Foxconn are now doing the same with Sharp.
As far as profit margin being thin, that might be true, but it adds up over millions of units. Further, it is so thin that Panasonic wants to stop making TVs and focus just on building displays for companies like Apple. Whatever the case might be, Apple isn't hurting from the profit margins being thin.
As far as Samsung's own divisions to feed its own production is concerned, you might be right, but each of Samsung's divisions are treated as different companies. So one Samsung division sells the product to the other divisions. Sure there is some discount built in there, but the division that is selling the product is trying to make a profit. Moreover, Samsung's top end phones often times cost more than Apple's.
Quote:
Originally Posted by TBell
You should get some perspective. Sharp has been making LCDs much longer than Samsung. Further, unlike Samsung, it actually builds all its own displays. In low to mid end televisions, Sharp's displays kick Samsung's butt. Where Sharp needed help was being able to produce smaller screens in the quantity companies like Apple needs. Some people might have forgotten, but Apple invested heavily in Samsung's display business years ago to help Samsung build the manufacturing capacity up to where it is at now. Apple and Foxconn are now doing the same with Sharp.
As far as profit margin being thin, that might be true, but it adds up over millions of units. Further, it is so thin that Panasonic wants to stop making TVs and focus just on building displays for companies like Apple. Whatever the case might be, Apple isn't hurting from the profit margins being thin.
As far as Samsung's own divisions to feed its own production is concerned, you might be right, but each of Samsung's divisions are treated as different companies. So one Samsung division sells the product to the other divisions. Sure there is some discount built in there, but the division that is selling the product is trying to make a profit. Moreover, Samsung's top end phones often times cost more than Apple's.
can you backup your statement "Apple invested heavily in Samsung" with legitimate sources? or are you talking about the measly $100M Samsung received in late 1990's?
That sounds a bit nonsensical - especially given that most Apple displays until Apple's new iPads were made by LG. (And LG is still LOSING money)
Quote:
Originally Posted by MJ Web
Samsung sucks!
[ link to video removed ]
i doubt using one (1) example from five (5) years ago will sway people to your opinion.
Quote:
Originally Posted by emacs72
i doubt using one (1) example from five (5) years ago will sway people to your opinion.
Then simply Google "broken samsung tv" and get countless hits!
Quote:
Originally Posted by Gazoobee
Sharp is also already *close* to being a wholly owned subsidiary of Apple and Foxconn ...
last i heard, Foxconn has a ten (10) percent / $800+ million stake in Sharp Corporation. Apple would have to invest about $3.5 billion to make Sharp Corporation a subsidiary of Apple / Foxconn.
Quote:
Originally Posted by Mikeb85
Apple owns specific patents relating to certain aspects of their displays, but you can't patent a display resolution or PPI number.
As an aside, HTC is releasing a 5 inch 1080p display phone... 440 ppi...
Made by Sony, not Samsung.
Quote:
Originally Posted by MJ Web
Then simply Google "broken samsung tv" and get countless hits!
... which does absolutely nothing to strengthen your opinion. if you type in 'broken apple iphone' in Google or Bing you'll get many more hits than the Samsung query. both Samsung and Apple make quality products, and from both companies some items don't perform up to spec.
As my Grandmother would have said: "Cutting off your nose to spite your face".
I guess you missed the news earlier this year when Apple announced that they were prepaying $3.9 Billion to their suppliers.
Much of this money was being fronted to Samsung's competitors who needed investment in their LCD factories.
I don't think Apple is worried, they have been planning this for a few years.
Quote:
Originally Posted by emacs72
i doubt using one (1) example from five (5) years ago will sway people to your opinion.
Quote:
Originally Posted by Smallwheels
Build your own stuff Apple. Actually make something instead of just designing things. What could Apple do with one-hundred-billion dollars? It could create all of the factories it needed in the USA and control them with total secrecy. How much has Apple lost to other companies copying products? If Apple had manufactured all of their own products then that copying would have been minimized. The money lost could have gone into USA based factories and employees.
It perhaps could build the factories in the US, but they'd have to bring Chinese workers here to do the actual work. The US does not have trained workers; we graduate MBA's and bankers and financial advisors not folks who can make stuff. And who's going to train enough tool and die makers and build tool and die factories to build the components that go into the iDevices?
Where is Apple going to find skilled high school students who will eventually learn the engineering to learn the skills to build the plants that build the machines that make the tools that make the machines that make the components that are assembled into the iDevices.
Apple's $100B is far less then 1% of the amount of money necessary to build the infrastructure to start the process of bringing these job into the US. How much time would all this take? At least 2 generations or about 40 years. That is the number of years the US has been neglecting basic infrastructure and education in the useful arts. The last generation that had these skills in sufficient quantity was the WWII generation; by the mid-1970's this generation was reaching their 60th year, and retiring with comparatively few able to replace them.
Dream on.
Quote:
Originally Posted by hill60
Made by Sony, not Samsung.
Doesn't matter, just commenting that OEMs are moving beyond ~330 ppi... HTC have always been the best Android manufacturer, and once again they're leading the way...
Anyhow, S-LCD was a Sony/Samsung joint venture, and now I believe Samsung are the owners. Samsung products might suck, but their manufacturing is great - they make some of the best memory, SSDs, and various other parts...
Quote:
Originally Posted by Spacepower
I guess you missed the news earlier this year when Apple announced that they were prepaying $3.9 Billion to their suppliers.
Much of this money was being fronted to Samsung's competitors who needed investment in their LCD factories.
I don't think Apple is worried, they have been planning this for a few years.
Well, hope it works out for Apple.. $3.9B sounds a lot, but Samsung spends that much in a month+.
According to Anandtech, Samsung is bailing out because Apple was trying to get better pricing from Samsung (based on what they get from other suppliers), and Samsung claims they cannot compete under such pricing (while keeping quality?).
If true, here might be a reason why LG and Sharp have more quality issues.
This will be interesting on both ends - to see how will Apple overcome suppliers change in terms of volumes and quality, and what will Samsung do with additional manufacturing capacity. I'm expecting them to become even more aggressive with releasing new products. Anandtech has a Dailytech news about new Google 10" tablet with 2560x1600 resolution. Cannot open link from my office right now (http://www.dailytech.com/article.aspx?newsid=27995) but wouldn't be surprised Samsung is behind that screen...
All that being said. We had some issues with Samsung's monitors at work, as well as some of my colleagues had at home. Last 4 Samsung monitors dead lived just through their 3 year warranty and died within a few months after that. Coincidence it could be, but... as the old saying goes, bitten by the snake, scared by a lizard. Majority of our office monitors are Viewsonics nowadays, and I cannot say our office screen reliability went down at all. In fact we're still to replace any of our Viewsonics (and some are over 4 years old). I'm personally using LGs at home, both TVs and monitors, and can't find a complain, at least not for the money invested. Based on that humble experience of mine, I'd be surprised if this shift causes any problems to Apple.
Quote:
Originally Posted by JoshA
It's just as well, Samsung have a huge conflict of interest. No way Samsung could avoid copying Apple's designs before Apple even delivers a new product.
Obviously Apple was already removing component production away from Samsung.
I'm sure other Apple suppliers are happy and may even come out with components better than Samsung's.
Well, they couldn't compete with Samsung when they were financially better off back in the 90's. Why are they going to all of sudden make *better* products now?
Everyone in the display business is losing money - except for Samsung. Everyone in the semi business (memory) is losing money - except Samsung and Toshiba.
Quote:
Originally Posted by thataveragejoe
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'd take a Sharp display over a Samsung any day. Far superior.
Quote:
Originally Posted by Mikeb85
Doesn't matter, just commenting that OEMs are moving beyond ~330 ppi... HTC have always been the best Android manufacturer, and once again they're leading the way...
Anyhow, S-LCD was a Sony/Samsung joint venture, and now I believe Samsung are the owners. Samsung products might suck, but their manufacturing is great - they make some of the best memory, SSDs, and various other parts...
I think Sony Mobile Display is still in business - in fact, it is now part of Japan Display LTD. HTC is moving from Samsung because of the AMOLED shortages (caused by the growing internal demand from Samsung Mobile).