Apple screens soon not Samsung made
23 October 2012, 12:44
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.
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
Samsung now plans to cut back ties with Apple and will stop supplying Apple with LCD screens next year, the report said.
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
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.
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
According to the Korea Economic Daily,
Samsung sold Apple about $7.8bn worth of components in 2011, making
Apple Samsung's biggest customer.