Samsung to Cease Providing LCD Panels to Apple in 2013

[GQB]

Originally Posted by Santabean2000

Agreed. Seems like business is getting personal. Don't know that's a good idea.

Think they should just make great products and source necessary components from best supplier.

So Apple should just continue to use a company that steals its technology and its economies of scale in order to produce a competing product. Make sense to me

[AppleScruff1]

Samsung does something like $5-7 billion a year in contracts with Apple. It's only a few percent of their total revenue.

[314631]

Originally Posted by AppleScruff1

Remember that when you have an Apple product with a second tier supplier screen that looks like crap. Enjoy.

It's already a lottery whether you get a Samsung display or someone elses. So for reasons of consistency and fairness, it's probably a good thing all of us are getting the same inferior displays in future.

[devilstrider]

Originally Posted by iGrip

If this will allow Apple to increase their profit margins, I'm totally in favor of it!

Yeah by selling a cheaper inferior product for the same price.

[Sony311]

Have you been under a rock in the last 10 years? Samsung makes displays, SSD, chips, component chips, etc. Just to name a few things. almost 80% or more of your electronics have a Samsung chip or other in it. Please do your research before commenting such drivel next time.

Originally Posted by Iconoclysm

Samsung doesn't "create" much of anything, really.

[the read]

Originally Posted by Chupa Chupa

Please expand on this. In what instance has Apple not worked with other companies when it was strategically smart to do so? Just on my memory I can't recall Apple disengaging from companies unless that company did something counter to Apple's own best interests. Ultimately, all companies chief responsibility is to protect itself. Likely moving away from Samsung is not as much retaliatory as a matter of Apple unsure it can trust them now that they are a direct competitor and also have stolen Apple ideas.

This is not the first or only company that Apple are at war with. Google
/Apple maps is another great example of Apple cutting its nose to spite its face. Apple are happy to provide a lower quality product instead of working with the best in the market to ensure a better product. Apples products will suffer each time they make this choice.

Apples history is littered these repeat problems. Remember when they were building their own CPU's for PC. They fell drastically behind intel and AMD, eventually they came to their senses and redesigned to take advantage of the technology created by other companies.

Apple cannot do everything on their own.

[AppleScruff1]

Originally Posted by aurichie

It's already a lottery whether you get a Samsung display or someone elses. So for reasons of consistency and fairness, it's probably a good thing all of us are getting the same inferior displays in future.

Good point. If the displays are consistent, even if poor, the end user won't know the difference and will be happy.

[flopticalcube]

Originally Posted by the read

Apples history is littered these repeat problems. Remember when they were building their own CPU's for PC. They fell drastically behind intel and AMD, eventually they came to their senses and redesigned to take advantage of the technology created by other companies.

Apple cannot do everything on their own.

You mean IBM and Motorola....

[KPOM]

Originally Posted by YaocH

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??

My guess is that the display issues will be sorted out. Plus, AU Optronics is being added into the mix, and Sharp is producing displays for the iPhone and iPad, and is a potential option for the MacBook line. I've had the "inferior" LG display on my last 2 MacBook Airs, and am fine with them. The biggest room for improvement with the MacBook Air would be switching to IPS from just about anyone rather than using Samsung's vs. LG's TFT display.

Apple and Samsung seem to be fulfilling contracts rather than building a supplier relationship right now. It shouldn't be surprising. In the long run, what hurts Apple more is sending money to a company who has obviously used that money to turn around and compete against them.

[MLMcMillion]

Both of these companies need to grow the **** up and get over themselves.

[rendevouspoo]

Originally Posted by GQB

So Apple should just continue to use a company that steals its technology and its economies of scale in order to produce a competing product. Make sense to me

You still think Samsung is stealing from Apple? How cute.

[Steve121178]

Originally Posted by Sony311

Have you been under a rock in the last 10 years? Samsung makes displays, SSD, chips, component chips, etc. Just to name a few things. almost 80% or more of your electronics have a Samsung chip or other in it. Please do your research before commenting such drivel next time.

Exactly. It's astonishing what Samsung produce.

In my MBA for example, they produce the SSD, the screen, RAM and probably other components I don't even know about.

The alternatives to the Samsung components are all inferior! Other SSD's were a lot slower, other screens were not as vibrant etc. Need I go on?

[samcraig]

Originally Posted by genovelle

How can keeping your main competitor from being able to hold you supply hostage be a bad thing.

Maybe you're unaware of a think called a contract?

Originally Posted by GQB

So Apple should just continue to use a company that steals its technology and its economies of scale in order to produce a competing product. Make sense to me

You realize that nothing Samsung "learns" from the compnents Samsung makes helps them (in your words) steal. What can Samsung learn from producing a screen?

Anything they can/would "steal" is available when Apple has their keynote and/or the product is available for purchase. They don't need to be a supplier to copy/steal (again - your words).

[gnasher729]

Originally Posted by NachoGrande

it's called cutting your nose off to spite your face

You're right. Big, big mistake, Samsung.

[MacinDoc]

Originally Posted by Chupa Chupa

Please expand on this. In what instance has Apple not worked with other companies when it was strategically smart to do so? Just on my memory I can't recall Apple disengaging from companies unless that company did something counter to Apple's own best interests. Ultimately, all companies chief responsibility is to protect itself. Likely moving away from Samsung is not as much retaliatory as a matter of Apple unsure it can trust them now that they are a direct competitor and also have stolen Apple ideas.

Well, I do recall Apple abruptly switching graphics suppliers for their Macs a couple of years back, purportedly because SJ was furious that the graphics specs of an unannounced iMac (I think) were leaked by a supplier.

[AppleScruff1]

Originally Posted by gnasher729

You're right. Big, big mistake, Samsung.

You do realize that Apple is only a few percent of Samsung's business, right?

[noiseordinance]

Samsung > LG display, any day, every day. Way to go Apple.

[Chupa Chupa]

Originally Posted by ChrisTX

Agreed, Apple with the removal of the YouTube app(I know it's in the AppStore), Google Maps, and now the shift to lower quality displays seems to have forgotten about the consumers needs, and wants. This is all to spite the competition, and nothing more. Sad really.

If Apple's intention was to spite the competition it wouldn't allow YouTube or Google on iOS period. You forget Apple must license from Google and Google told Apple that it could not have the latest and greatest Google Maps like Android has. That's why Apple decided drop the license. One can argue whether doing it before the license expired was smart given Apple Maps incompleteness, but different issue.

You also ignore Apple is a consumer products company. It has to please consumers or it doesn't make $. It knows if it spends its energy settling scores then it has none left to make great products to sell and make $. Also, let's not forget who started the pissing match. (Hint: it wasn't Apple).

[KPOM]

Originally Posted by AppleScruff1

Samsung does something like $5-7 billion a year in contracts with Apple. It's only a few percent of their total revenue.

Nonetheless, it probably isn't a good idea to be too reliant upon a competitor. Apple seems to be replacing Samsung with multiple suppliers. That is good business sense.

[Nomadski]

Originally Posted by Foxer

Everyone seems to be certain that this is a bad decsion on Apple's part. However, my reading of the story seems to be that this a Samsung move.

Regardless, I don't think this is a long-term problem for Apple. The culture that Steve Jobs left (and I think it is still ingrained there) calls for pitiless insistence on meeting high standards. If LG or whoever can't meet those standards now, Apple will get them to that level via carrots and sticks in pretty quick order.

And anyway, the average iConsumer couldn't tell the difference today even if they knew that Apple bought screens from different companies.

And for those that seem to be so taken aback by the posts about Apple's need to maximize profits: you do understand that they are a corporation, right? They are there to make little trinkets that we want to buy so they can get our money. Not to improve the human condition.

Agreed, everyone takes this story as an Apple move where it seems pretty clear it's coming from Samsung themselves.

If they are flogging off their LCD division, why wouldn't they want to cease their LCD contracts, especially those with huge discounts.

I would bet most people couldn't tell the difference in LCD until they look at the part numbers, at which point they go red, get outraged and starts believing their screen looks like crap.

[flopticalcube]

Originally Posted by KPOM

Nonetheless, it probably isn't a good idea to be too reliant upon a competitor. Apple seems to be replacing Samsung with multiple suppliers. That is good business sense.

It would be except in some cases, like screens, the other suppliers are woefully lacking.

[Foxer]

Originally Posted by AppleScruff1

You do realize that Apple is only a few percent of Samsung's business, right?

And Samsung makes fungible commodities that Apple can get elsewhere with zero effect on their bottom line.

[KPOM]

Originally Posted by noiseordinance

Samsung > LG display, any day, every day. Way to go Apple.

Already it's a crapshoot whether you get an LG or Samsung display on a MacBook. Anyway, the new iPhone 5 display is superior to the one on the 4S regardless of who is making it. It's a matter of calibration.

[gnasher729]

Originally Posted by WhySoSerious

Most people probably don't realize that this hurts Apple more than Samsung. Bad business move by Apple.

That's because it doesn't. Samsung's competitors will get some major revenues, and a huge customer who tends to be a pain - but that's the kind of customer that makes you improve your products. And if they have any financial problems, they will have an investor.

[KPOM]

Originally Posted by flopticalcube

It would be except in some cases, like screens, the other suppliers are woefully lacking.

That's changing. Sharp is producing the IGZO display. Plus, it's a chicken and egg situation with the other suppliers. Until they start getting big orders, they won't have the money to invest in capacity. That's probably why the shift has been gradual.