Korea Times: Samsung will no longer supply displays to Apple

by: Bogdan PetrovanOctober 22, 2012

For years, Samsung and Apple have enjoyed one of the most bizarre relationships in the tech industry. Fierce competitors in the smartphone market and archenemies in the ongoing patent wars, the two tech giants have collaborated closely in the device component business. Samsung has been providing critical smartphone and tablet components to Tim Cook’s company, including application processors, displays, and memory modules. In turn, the Koreans have made billions, thanks to the huge volumes generated by Apple’s business.

But slowly, Samsung and Apple are drifting apart. Just last week we learned that the Koreans are only providing chip foundry services for the A6 chip found in the iPhone 5, after designing it for several years. Moreover, Apple has been rumored to approach TSMC and even Intel for foundry services, and thus replace Samsung altogether.

Today, Korea Times reports that, according to an anonymous executive, Samsung Display will no longer make display panels for Apple, starting next year. The Koreans have already reduced the deliveries of displays to Apple, from 15 million LCDs in the first half of 2012, to 3 million in the third quarter, with an estimated 1.8 million units to be shipped by the end of the year.

Korea Times says that Samsung is no longer satisfied with the “huge price discounts” that Apple is demanding. The price per pixel has more than halved from the iPad 2 to the iPad 3, and Samsung is not happy about it. The Cupertino-based company is well-known throughout the industry for its hard bargaining tactics, which Apple is able to use due to its huge volumes and clout.

To replace the lost business from Apple, Samsung Display will reportedly sell more panels to the handset division of Samsung Electronics (its sister company) and Amazon.

  • May

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  • shaan

    Good news.

  • Justin Quang

    One question, the profits that Samsung Display division makes and Samsung Mobile division makes, does it count as one big profit and go to the main Samsung HQ?
    If yes then Samsung should’ve dropped them long ago because whatever they make through selling parts, all go back to the fruit through the court, and to the lawyer.

    • They won’t cut their nose off to spite their face. But it could be the straw that breaks the camels back. I would expect that Samsung will now be no longer renewing contracts with Apple. Hmmmm…maybe the iPhone margins will come down a little and about time too. Unless they charge more of course. Hang on. Sheeple do tend to pay more…

    • Adam Koncz

      I believe not. Samsung Display is a separate entity but 100% owned by Samsung Electronics which is owned by the Samsung conglomerate.
      Samsung has about 2.5 times more revenue than Apple but about 2/3 of the net profit. On the other hand Samsung spends about the same as Apple profit in R+D every year. Also they invest twice as much in i2012 alone.

  • Zaid

    Perfect !!

  • Charles

    Apple can keep the iCrap! I will stick with companies that don’t demand dirt cheap components AND still charge the consumer a fortune! I love my Google nexus 7 that I purchased at staples for $169 after coupons. I love Asus products, maker of the nexus 7. I love the Google galaxy nexus phone as well and its maker, Samsung. I will support any brand over apple and the iCrap line though. Apple fanboys can shove that junk up their ………. Get away from the iCult people. As long as morons with more money than sense keep buying from such a irresponsible company, they will keep over chaging you.

  • Akshat

    Sharp is already providing the displays for iPhone 5 which are much better than samsung’s and as far as the photo is concerned, they forgot to make apple the stone and android and samsung trying to cut it but wearing off themselves.

  • Lizzy Richardson

    You folks have no clue what’s under the hood, do you? It’s ultimately all the same OS with different case designs! Androids making ads about file sharing Apple released seven, eight years ago. And it’s all from Mama UNIX, by way of Gnu Free project. So stop acting like thirteen year olds. I love my Apple stuff, after twenty years fixing my software is a breeze! But do I have screaming anger tantrums about Android? No. Be an adult- picking fights over other people’s tastes is so 8th grade! Sorry some of you are so scarred by not having a iPod in high school but get over it already.

    • Xqube

      you HAVE to marry me :)

  • Lizzy Richardson

    BTW- my iMac has gone seven years and is just starting to slow down. Every Apple product I’ve had has run forever; a twelve yr old G3 that survived Katrine Flood and is used by the kids still is no piece of crap. Apples are bargains. We’ll see how the competition does over time. Microtrash is the low mark; let’s see where Googles Linux Project lands after five years on the goods.