updated 06:30 pm EDT, Wed April 20, 2011
Apple says no plans to change Samsung supply
Apple during its second quarter 2011 results call downplayed the possibility of its lawsuit against Samsung jeopardizing supply. Asked by UBS analyst Maynard Um about the effect, COO Tim Cook said the connection was still "very valued" since Apple was Samsung's largest customer. The two had a "strong relationship," he said, casting the issue as one specific to Samsung's mobile group.
The executive additionally talked down claims by some that Apple had turned to a lawsuit first. Discussions had been underway and only changed to a lawsuit after an impasse.
"We think Samsung had crossed the line," Cook explained. "After trying to resolve the issue, we decided to use the courts."
Apple wasn't expected to antagonize Samsung as a whole as it depends heavily on the Korean company for flash memory and processor manufacturing as well as some displays. Samsung likewise would have difficulty affording attempts to drop Apple as a customer, both for possible anti-competitive legal issues but also due to an unstable financial position. It already posted a steep drop in profits in the winter that was blamed informally on the switch to parts that favored Apple, like flash memory and smaller displays.