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Report: Samsung to terminate Apple LCD contract

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.



By Electronista Staff
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Comments

  1. TomSawyer

    Fresh-Faced Recruit

    Joined: 01-04-08

    Profit. We don't need no stinking profit.

  1. SockRolid

    Forum Regular

    Joined: 01-21-10

    Apple is constantly working on component deals. They've done a billion dollar deal with Sharp for IGZO-based LCD panels. And, by the way, Sharp has developed an IGZO-based OLED "printing" technology with high yield and low cost. LCD technology's days are numbered.

  1. coffeetime

    Mac Enthusiast

    Joined: 11-15-06

    Samsung's new tagline: "Will Work for Food".

  1. Charles Martin

    MacNN Editor

    Joined: 08-04-01

    This stinks of a PR lie: "you can't fire us, we quit!"

    There have been numerous and widely-reported stories that Apple is withdrawing its business from Samsung wherever possible, and I think they just want to make it look as though they don't need Apple's business to sooth stockholders.

    The fact of the matter is that Samsung will be losing BILLIONS in annual revenue from Apple, and Amazon isn't going to make up for that (and of course they make no additional profit on producing displays etc for their own products). Apple bought LOTS of things from Samsung, not just displays.

    If I were a Samsung stockholder, I would certainly be looking to see if now wouldn't be a good time to cash out. The company will continue to do well with their knock-off products of course, they're not going under or anything, but consider this: if ANY other company that supplied that much stuff to Apple lost Apple's business, stock pundits would be calling it a "death spiral."

  1. ljmac

    Fresh-Faced Recruit

    Joined: 11-07-10

    They've got that title the wrong way around: it should read "Apple To Terminate Samsung LCD Contract". Seriously, the ego of Samsung's management is idiotic - not only have they lost their biggest contractor because to foolish pride, they have to spin at as their own decision. As if!

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