Samsung to Cease Providing LCD Panels to Apple in 2013

[MacRumors]

The Korea Times reports that the deteriorating relationship between Apple and Samsung that has seen the two companies reducing their component supply deals is now extending to LCD panels, with Samsung reportedly ending supplies of the panels to Apple next year.

The Cupertino, California-based firm has been lowering its reliance on Samsung-manufactured displays for use in its popular i-branded devices as it is leveraging its influence to source components from Samsung's rivals attracted by better pricing.

"We are unable to supply our flat-screens to Apple with huge price discounts. Samsung has already cut our portion of shipments to Apple and next year we will stop shipping displays," said a senior Samsung source, asking not to be named, Monday.

The report claims that Samsung shipped approximately 15 million LCD panels to Apple in the first half of 2012, with the pace falling to 3 million panels in the third quarter and expected to drop to 1.5 million in the fourth quarter as Apple has shifted to other suppliers.

Samsung is reportedly not involved in LCD production for the "iPad mini", with LG Display and AU Optronics said to be handling component production. And with Apple reportedly cutting back on memory orders from Samsung and now designing its own A-series chips while using Samsung simply as a contract foundry, it seems clear that Apple is steadily reducing its reliance on Samsung as the two companies have continued to face off both in the marketplace and in courtrooms around the world.

Article Link: Samsung to Cease Providing LCD Panels to Apple in 2013

 

[NachoGrande]

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

 

[Rudy69]

In the end this is probably hurting Samsung more than Apple

 

[brock2621]

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

15 million to 0 in 12 months...

 

[PackFan]

Not good - considering that the LG retina Macbook Pro displays have serious image retention problems - while the Samsung ones do not...

 

[Santabean2000]

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

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.

 

[Michaelgtrusa]

...and made in...china.

 

[simonb76]

Can they live without each other?

 

[flopticalcube]

Meow.

 

[Tingler]

[url=http://cdn.macrumors.com/im/macrumorsthreadlogodarkd.png]Image[/url]


The Korea Times reports that the deteriorating relationship between Apple and Samsung that has seen the two comapnies reducing their component supply deals is now extending to LCD panels, with Samsung reportedly ending supplies of the panels to Apple next year.

This was going to happen sooner or later. I doubt that anyone is really surprised by this.

 

[MetalRCG]

Not good - considering that the LG retina Macbook Pro displays have serious image retention problems - while the Samsung ones do not...

I was gonna say, aren't Samsung displays superior to LG's? Not sure I like this move considering I'm planning on buying the new iMac.

 

[WhySoSerious]

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

 

[magbarn]

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.

 

[Moonjumper]

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.

 

[YaocH]

In the end this is probably hurting Samsung more than Apple

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??

 

[Nickraphael]

Get ready for more apple product recalls in the future

 

[unplugme71]

This is going to hurt both Apple and Samsung, unless Apple can find a better display manufacturer! Samsung is great at display and memory/storage. Leaving them was like leaving Google Maps without having a superior product/manufacturer ready to replace.

Ugh, the both of you kids need to grow up and play well together!

 

[ChazUK]

I'm sure the CEO's of LG and Sharp will be rubbing their hands together at this news.

 

[iGrip]

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

 

[dlmart2]

I'm sure Apple will purchased their next supplier of LCD's to prevent another company from affecting their ecosystem.

 

[DisMyMac]

LG Display and AU Optronics said to be handling component production.

"Walmart" and generic brands.

(AU = Acer + another 'wha?' company called Unipac Optoelectronics Corporation)

 

[the read]

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.

 

[bungiefan89]

Sore losers.

 

[nick_elt]

prob not the best move for consumers but I dont think anyone is suprised by this.

 

[MacinDoc]

If Apple avoids using Samsung merely because of the IP cold war between the two companies, then it certainly hurts Apple. Having fewer component manufacturers to negotiate with reduces Apple's bargaining power, may increase component supply costs, and could limit Apple's access to the best available components. I, for one, hope that this is not true.