Skip to main content

Apple & Samsung ready to cut LCD ties in 2013

Samsung will reportedly end its contract with Apple and no longer supply the Cupertino-based firm with liquid crystal displays starting next year.

As reported by the Korean Times, Apple is no longer a money maker thanks to its "stiffer supply-chain management structure," the paper said.

"We are unable to supply our flat-screens to Apple with huge price discounts," an unnamed Samsung source told the K-Times. "Samsung has already cut our portion of shipments to Apple and next year we will stop shipping displays."

Neither Samsung nor Apple immediately responded to a request for comment.

Samsung Display was Apple's top supplier during the first six months of 2012, shipping more than 15 million LCDs. Rival LG Display and Japan's Sharp provided 12.5 million and 2.8 million shipments to Apple, respectively. In the third quarter, however, Samsung shipments dropped to 3 million, and are expected to dip even lower, to 1.5 million, in the fourth part of the financial year.

In August, there were reports that Sharp got a late start on iPhone 5 production due to manufacturing difficulties.

Samsung could make up the difference thanks to orders from other tablet makers like Amazon, the Korean Times said. Last week, there were rumours that Amazon was in "advanced talks" with Texas Instruments to buy TI's mobile chip business.

In February, Samsung spun off its LCD business. At the time, it was suggested that Apple might be more willing to do business with a company that was separate from Samsung, which is a direct competitor - and patent foe - on many fronts.