Samsung Display ends deal with Apple to supply LCD’s, flips the middle finger
For quite a few years now, Samsung has been the primary supplier of LCD displays to Apple. You heard that right, the two companies that hate each other in the courtrooms actually have quite a huge agreement on displays for all those iJunk devices. Things have obviously changed however, as Samsung as already confirmed they’ve cut off shipments to Apple this year, and by next year will be completely done.
That’s going to be a good financial hit to Samsung “but Samsung shipped less than 3 million to Apple during the third quarter of this year and we expect the quarterly shipment in the fourth quarter to fall to some 1.5 million” according to a source close to the matter.
Besides all the courtroom drama, the reasoning for the change is simple…money. Apple wants to buy their parts as dirt-cheap as they can (which we’ve known for years as they’re known to squeeze everyone for their own profit), and Samsung obviously wants to be able to make a profit on the products they sell. “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,” stated an unnamed senior Samsung source.
Samsung Display has already worked out plans to cover the financial hit after the agreement ends. The Samsung Electronics handset division and Amazon both have increased orders for displays, and they’re confident this will work as an alternate option going forward.
Am I honestly surprised by this? Not at all. Apple and Samsung have had issues for numerous years, but it still made sense for a long time to keep their business ties. As dramatic as everything has gotten the past year or so, it was only a matter of time before the agreements ended. Sammy might manage to offset a good amount of losses with the other business they’ve generated, but let’s be honest…Apple is a huge buyer, and that’s a LOT of money out the door.
Source: Korea Times