Samsung to Cease Providing LCD Panels to Apple in 2013

[uknowimright]

Yes, Apple is a big customer and this will definitely affect their production lines:


However, I wonder if this will still affect profits much. Samsung was supposedly producing these for Apple at "huge price discounts", so Samsung may not consider this a major problem. They've probably calculated on the risks of going here a lot already.

yeah, the possibility of selling less but at a higher price to others is there

 

[JS82712]

Sharp and LG : me gusta.

 

[the read]

In the end this is probably hurting Samsung more than Apple

Disagree. Apple need to learn how to work with companies.

 

[SimonTheSoundMa]

I find this very odd. Samsung have just split their LCD division away from the company and are looking to sell. I think Apple are more worried about this division going under ending up having no supplier rather than them fighting over patents being the main reason.

It's unknown if Samsung will carry on making LCDs in the next 6 months to a year.

 

[Aluminum213]

Samsung is pretty much the best at making displays so I'm not sure how this benefits Apple at all


but Apple fanboys will figure out a way

 

[tasset]

Disagree. Apple need to learn how to work with companies.

What if "working with other companies" means that the other company has bargaining power to force Apple to "share" their innovations?

 

[drew0020]

Samsung is pretty much the best at making displays so I'm not sure how this benefits Apple at all


but Apple fanboys will figure out a way

I couldnt agree with you more. Samsung currently makes the best displays for Apple products. Another bad move for Apple.

 

[gpzjock]

Gangnam style: Dress classy, dance cheesy.
Samsung style: Build nicely, fight nasty.

Apple and Samsung will only hurt themselves and help their competitors by throwing their toys at each other.
Grow up and play nice lads.

 

[steviewhy]

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.

Just remember which parts you'll now be getting if your SSD or LCD needs to be replaced down the road. God forbid!

 

[hppy29]

Who's to say this was Apple's choice? It seems that Samsung have had to give huge discounts, getting huge orders doesn't always mean huge profit.

 

[Zombie Acorn]

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

Why? Are you the CEO?

 

[Steve121178]

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

At the expense of customer satisfaction? Good one.

Have you seen the difference between Samsung & LG displays for example?

 

[HobeSoundDarryl]

This is very good. Apple's money thrown to Samsung competitors only strengthens competition in the component market. Solid orders allow these firms to plan expansion and invest in R&D. $7-8 billion dollars in lost orders was damn foolish.

So, move that $7-8 billion to other Chinese firms and hope they don't follow in Samsung's footsteps through consumer iDevice knockoffs? Chinese firms flush with new cash NOT creating knockoffs? Think about it.

The revenge of "hurting" Samsung just creates several more Samsungs.

 

[Iconoclysm]

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.

I'd say it's still business.

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

That's because what you're saying is not a fact, it's an opinion.

 

[Zombie Acorn]

At the expense of customer satisfaction? Good one.

Have you seen the difference between Samsung & LG displays for example?

I have, I gave away a 42" LG display a few months ago after buying a Samsung, night and day.

 

[MacinDoc]

Who's to say this was Apple's choice? It seems that Samsung have had to give huge discounts, getting huge orders doesn't always mean huge profit.

Given that the quote is from a Samsung employee, this could only be interpreted as a decision made by Samsung. Otherwise, the source could not be expected to have access to Apple's internal discussions regarding suppliers.

 

[Krazy Bill]

Good news. Keep it up! I'm sure this hammers Damsung profit margins.

15 million to 0 in 12 months...

Easy Tim... save the hate for your personal affairs. Doesn't belong in the biz world.

 

[HobeSoundDarryl]

Now all the Samesung fanboys can cry how Apple is screwing them. Good, Apple trusted Samsung with being a parts supplier and Apple got screwed over.

So trust that those new Chinese partners won't want to follow Samsung's very profitable lead into consumer iDevice-like products? Trust Chinese companies won't use the new cash to fund knockoff iDevices? Don't those new partners already make Android-based phones?

 

[Iconoclysm]

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.

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

 

[the read]

What if "working with other companies" means that the other company has bargaining power to force Apple to "share" their innovations?

It's how the world works. Sharing responsibilities and expertise is good business and provides a stable product that advances the market quickly. It's impossible for Apple to become experts in all areas. Apple have been a great company that takes other companies tech and combines them into a new product.

Apple know how to polish technology and stick a logo on it. They are not innovators of core tech. They do not have this expertise.

 

[apersona]

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

So it begins.....wonder how long this corporate trial separation will go. Or if it'll just be a bitter, bitter divorce process between these two.

I think it's very personal on the Korean side. First of all, the so-called firewalls between Samsung divisions are strictly for show. Everything Samsung does is ultimately controlled by one man and his family members. The IP lawsuit outcome was a huge loss of face for a man not used to losing. Anyone who knows Koreans, knows that cutting off nose to spite face doesn't begin to describe the extent to which they will go to humiliate an opponent. Just look at North vs South: an artificial division between a formerly homogenous culture. Yet, DMZ is one of the most heavily militarized regions on earth.

Samsung will never forget what Apple did to it (him) and there will never be peace between these two companies again.

 

[MacinDoc]

I have, I gave away a 42" LG display a few months ago after buying a Samsung, night and day.

Actually, Samsung's current lineup of LED-backlit LCD displays is generally considered by reviewers to be rather weak, but in general, I have preferred Samsung displays. Hopefully they will improve with the next crop, because I'll be in the market for a few in the next year or so.

 

[samcraig]

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

Sad. So increasing profits is more important that producing a quality product. Here's simple math for you. If Apple cannot maintain or increase the quality of their products - it won't matter what the profit margin is on a device.

 

[Glideslope]

This is a consequence of Samsung having business divisions. Samsung mobile compete with Apple, yet the Samsung component arm works with them. If they were one, the component side would be able to influence the mobile side to play fair. Then both companies would benefit, but especially Samsung.

Outstanding, and absolutely dead on. This has been the issue from Day 1.
The dam issue has always been Samsung Mobile, and Cooperates inability to deal with it due to all the Asian Borg Business Mentality.

This will be a short term issue for Apple. By 2014 it's a non issue. Today Apple is looking at suppliers for 2017.

In 2008 they were looking at 2013. Samsung makes great displays. However, others are almost there, and will be in 6-12m.

No winners here.

 

[iGrip]

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.

Is that why Apple has become the biggest and most profitable company in the history of the world? Do tell!