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Samsung ends LCD contract with Apple

Posted: 23 Oct 2012     Print Version  Bookmark and Share

Keywords:LCD display  iPad 

Apple won't be getting LCD displays for its devices from Samsung from next year onwards. According to The Korea Times, Samsung Display said it will stop supplying LCD display panels to Apple, ending the long-time partnership between the two firms.

Moreover, the main reason behind this fallout is not the ugly patent war that took place between Apple and Samsung; rather it's that Samsung is unable to supply LCD panels to the U.S.-based firm at discount rates.

The Korea Times reported the California-based firm has been lowering its reliance on Samsung-manufactured displays for use in its popular i-branded devices as it is leveraging its influence to source components from Samsung's rivals attracted by better pricing.

"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 named.

Samsung Display was the top supplier to Apple as of the end of the first six months of this year, shipping over 150 lakh LCDs, followed by its biggest rival LG Display with 125 lakh and Japan's Sharp with 28 lakh, said market research firm DisplaySearch.

"But Samsung shipped less than 30 lakh to Apple during the third quarter of this year and we expect the quarterly shipment in the fourth quarter to fall to some 15 lakh," said the source, who is directly involved with the matter.

Samsung Display didn't provide panels for Apple's new iPad—tentatively named the iPad Mini.

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