News24

Apple screens soon not Samsung made

2012-10-22 21:12

Seoul - Samsung is to stop providing liquid crystal display (LCD) screens for Apple, in a further sign of the deteriorating relationship between the two technology giants, the Korea Times reported on Monday.

The companies are locked in a bitter global patent war over their rival smartphone and tablet devices. But, until recently, Samsung remained Apple's largest supplier of screens and computer chips, despite their rivalry.

Samsung now plans to cut back ties with Apple and will stop supplying Apple with LCD screens next year, the report said.

The report quoted Samsung officials as saying that Apple has repeatedly driven down the price it was willing to pay for the panels and that new orders from Amazon and Samsung's smartphone division would make up for losing the Apple contract.

Pricing on the latest iPad display meant that Samsung was earning just half as much per pixel as it previously made, according to the report.

"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.

Samsung Display was the top supplier to Apple as of the end of June, shipping over 15 million LCDs, followed by its biggest rival, LG Display, with 12.5 million, and Japan's Sharp, with 2.8 million, according to market research firm DisplaySearch. But, in the third quarter, Samsung only shipped 3 million units to Apple and was on track to halve that amount in the current quarter, the report said.

Samsung has not contracted to supply screens for Apple's new iPad mini, and Apple is also reducing Samsung's role in chip production, taking the chip design process in house and leaving Samsung solely with manufacturing duties.

According to the Korea Economic Daily, Samsung sold Apple about $7.8bn worth of components in 2011, making Apple Samsung's biggest customer.

Comments
  • Mokati Answer - 2012-10-22 21:38

    wow....i never thought this battle was so serious to this extent.Is zuma a member of the Samsung company shareholders?lol....he must b

  • rlong1952 - 2012-10-22 23:51

    Great news, hope Samsung goes down the toilet. You living in SA have absolutely no idea what Samsung is like. Let me put you in the picture. Samsung runs South Korea, they control everything. They make use of bribes and underhand deals to get what they want. They have many sub-contractors in Korea and each year they demand the product from them at a lower price. Many of them have closed up shop because they have to sell to Samsung at below cost or Samsung simply does not pay them. They have successfully killed off all opposition in Korea and now that they cannot get their parts from locals they are relocating to Vietnam. They will very soon have two factories there, at the moment 70% of all their phones are made in Vietnam, pretty soon they will make all their products there. The government in Korea is in their pocket and they do what they like, they are so corrupt. I have Korean friends who are small entrepreneurs and they absolutely detest Samsung and all it stands for. Samsung has got the monopoly in Korea on TV's and most home appliances, you cannot believe how expensive a washing machine is in Korea. They have the Korean nation by the short and curlies. So to all you Apple haters, hope this puts it into perspective. Sure Apple makes most of its products in China and Taiwan BUT they don't control America and charge Americans unbelievable prices for their products.

      rlong1952 - 2012-10-23 03:38

      Those who gave me the thumbs down, care to explain?

      Saffa in East Asia - 2012-10-23 07:05

      Ha ha, my last request got me even more thumbs down and still no explanations, oh well...........

      GeeeMan - 2012-10-23 07:54

      I hear what you're saying and I didn't give you a thumbs down, but Apple is just as bad. The only country in which Apple has won the patent case is in the US (California where apple is based). I can not for one second believe that that decision was merited. Even the UK has forced apple to run adds apologising to Samsung for false accusation. They both employ strong arm tactics

      deon.oberholzer.90 - 2012-10-23 07:56

      Actually Apple is trying very hard to take over the American market, what do you think the court cases are for?

      Saffa in East Asia - 2012-10-23 08:47

      Geeman... thanks for the reply, but I don't think you really have any clue as to how deeply involved Samsung is in the Korean life and economy. Korea is a small country compared to the US and there is no way Apple can ever influence the American people they way Samsung does to the Korean, they run Korea. With regard to the unmerited decision by the court, it is interesting that when I spoke about this to a group of pretty informed Koreans they told me, 'Oh we all know that Samsung copied Apple, common knowledge, but we have to do that because that is the only way we can make a better product'. If you take a walk around Seoul you will see blatant copying of all things Western, especially cars. They wait a year or two after the car has been sold in the West and then they copy it almost to the point that it looks like a clone. You don't see those models in SA but in Korea they are as common as anything.

      profkaygee - 2012-10-23 09:08

      @Saffa. Why don't you do a smart thing and upload pictures on some site and then give us proof because right now what you are saying is just speculations without merit.

      Saffa in East Asia - 2012-10-23 09:26

      profkaygee.......... speculation about the cars? Mmmm, see them with my own eyes daily. Don't think you can upload pics here anyway.

      Saffa in East Asia - 2012-10-23 09:29

      profkaygee, this may help you. Bear in mind too that this is from a Korean Newspaper. http://english.chosun.com/site/data/html_dir/2012/09/28/2012092800880.html

      baldersnatch - 2012-10-23 11:08

      People seldom realize the true cost of all their first world material perks. Doesn't matter which brand you worship, they all try and drive costs down and margins up by outsourcing to people willing to work for less and be exploited because they have no better options.

  • jean.rossouwsa - 2012-10-23 06:12

    Wat, Apple gebruik SAMSUNG parte?!! kan nie wees nie!!

  • Doep100 - 2012-10-23 08:28

    Nee man Apple is kwaai! Al daai Samsung parte daar binne loop soos stroop...

      johan.pienaar.144 - 2012-10-23 08:38

      Dan moet hulle dit candy apple noem :)

  • boltonbarry - 2012-10-23 08:55

    Wonderful news

  • Saffa in East Asia - 2012-10-23 09:24

    Apparently it is all a lie...... http://news.cnet.com/8301-13579_3-57537773-37/samsung-says-its-still-supplying-lcd-panels-to-apple/

      rlong1952 - 2012-10-23 11:37

      Ok, I am truly confused, I share a link and then get thumbs down. Do people actually know what a 'thumbs down' mean?

  • KeenanMag - 2012-10-23 11:55

    You need to correct this article. Samsung has completely denied this, saying that the article upon which this article is based is a complete lie. I have no idea why the Korea Times would write this if not true.

  • rraubenheimer - 2012-10-24 16:29

    There are no "nice guys" when it comes to billions.

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