updated 12:26 pm EDT, Mon October 22, 2012
Samsung said to have decreased LCD shipments
Samsung is on the verge of terminating a deal in which it provides liquid crystal display panels to Apple for use in its iOS devices. This according to Samsung officials, who point to Apple's strict supply chain requirements as the primary factor in the decision to end the deal. Samsung is already said to have cut down on the number of displays it is shipping to Apple, with a complete cessation thought to arrive some time next year.
The Korea Times cites an unnamed Samsung source in its report on the LCD shipments. The source claims that the company is no longer able to supply screens to Apple at a steep discount, as Apple's strict requirements lower the financial attractiveness to Samsung of providing the iPhone maker with displays.
Samsung reportedly shipped fewer than three million displays to Apple in the third quarter of this year, and the South Korean manufacturer is expected to ship fewer than 1.5 million for the fourth quarter. Reportedly, Samsung displays were not used in the production of Apple's forthcoming iPad mini.
Apple is said to be looking to Samsung's rivals, including LG and others, to make up the gap left by Samsung. For the first six months of 2012, Samsung was the largest provider of displays to Apple, shipping over 15 million LCDs; LG and Sharp provided Apple with 12.5 million and 2.8 million displays respectively.
Samsung is reportedly turning to Amazon, which produces its own tablet products. Samsung's own tablet and smartphone arms have also increased orders from Samsung Display.