Breaking Up Is Hard To Do: Samsung Plans To End LCD Supply Relationship With Apple

Breaking Up Is Hard To Do: Samsung Plans To End LCD Supply Relationship With Apple

When two of the biggest companies in tech are hardcore frememies, it’s nearly impossible to find the middle ground to reconcile. Samsung and Apple are trying to break things off entirely, even though they need each other.

In the latest news on their breakup, Samsung has said that they will end their LCD panel supply relationship with Apple as of next year. The stated reason behind Samsung breaking ties with Apple is that Apple’s supply pricing strategy provides Samsung with insufficient margins.

The Korea Times spoke to a senior source at Samsung who explained the breakup:

“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.”

It’s been reported that Samsung was cut out of the iPad mini production. Ending their LCD supply relationship with Apple may be one way Samsung hopes to extract revenge for that slight, or it may have been a preemptive strike due to their declining relationship. Apple and Samsung have had a series of legal battles in the U.S. and abroad fighting over their Intellectual Property and whether or not Samsung ripped off the iPad.

In order to make up for their loss of revenue by cutting ties with Apple, Samsung is fielding more orders from its consumer electronics division as well as Amazon, which is using Samsung LCDs in the Kindle Fire HD which competes with the iPad.

Apple uses many Samsung components in their products, but have recently pledged to become less dependent on Samsung for components. Apple was Samsung’s top customer for LCD components for the first half of 2012, but they began cutting back on their LCD orders from Samsung back in September and purchasing more components from LG and Sharp.

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  • hitektoy

    Ha, ha! That’s so stupid! That’s like when your boss (Apple) fires you (Samesung) and then you say, “you can’t fire me, because I quit!”

  • Michael Kleinpaste

    Why would Samsung want to keep doing business with a company that keeps suing them illegitimately? http://www.wired.com/gadgetlab/2012/07/apple-v-samsung-jury-selection/ Sony really aught to hit Apple up for that Billion $$ settlement.

    Apple isn’t firing them either hitekoy. They’re reducing dependency, which is not uncommon in businesses. It forces companies to compete on price. Samsung’s saying they’re done doing business with Apple. Which I don’t blame them. I’m actually disappointed in the decisions Apple has been making making on the development and legal fronts. They’ve become the new Microsoft in all but name over the last few years.

  • DdeviTo_3

    I don’t think it’s a case of Samsung not able to supply Apple at all. Koreans are about saving face in times of embarrassment. Their statement is classic face saving. I wonder how much money they’ll lose from Apple contacts? It would have to be in the billions. Ouch!

  • flitzy

    This is what you get for screwing your biggest business partners. Samscum won’t recover from this. Apple bought 15 million LCD screens in the first quarter of 2012. Where the hell are samscum going to make that up from? Every other PC manufacturer have declined in sales and other tablets can’t come even close to the iPad in sales. Great job samscum, you just screwed yourself. Add the billion dollar damages they have to pay, I think the copy kings are out for the count. Be clear on one thing. Apple will make 100% sure that samscums rivals will profit and succeed out of this. Bye bye samscum. Don’t let the door hit your ass on the way out. Ha ha ha.

    Samsung is the one found guilty of blatant copying yet Apple is the bad guy?! Ok.

    Honestly, this is a good thing for Apple. Samsung is the industry leader in useless paperweights and dumpster knick-knacks but not much else.

    Good riddance.

  • Robert X

    Why would Samsung want to keep doing business with a company that keeps suing them illegitimately?

    Illegitimately? Really? I think a lot of people would disagree with you there.

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Buster HeinBuster Hein is Cult of Mac's Senior News Editor and lives in Phoenix, Arizona. Twitter: @bst3r.

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