Samsung Cuts LCD Supplier Relationship with Apple

Samsung Cuts LCD Supplier Relationship with Apple
October 22 18:06 2012 Print This Article

It’s over.

Samsung has announced that it will no longer supply LCD panels to Apple beginning next year. A senior Samsung official, who declined to be identified, told The Korea Times that it was due to “insufficient margins” after Apple updated its supply pricing strategy. Apple’s pricing on the latest iPad had reportedly caused the South Korean company to earn just half as much per pixel compared to previous iPad models.

This sour relationship between Apple and Samsung, which began when the former sued its hardware supplier (which also develops its own smartphones and tablets on the side) for patent infringement, is close to closure. Samsung’s role in the production of iPad mini is reportedly absent, while it is also relegated to just manufacturing (not co-designing) Apple’s A6 processors. The Cupertino-based company also cuts memory chip orders from Samsung.

But Samsung does not seem to mind losing a major client on Apple. The company is said to be earning more from its own consumer electronics and also supplies hardware to Amazon for its Kindle e-readers and tablets.

Source: The Korea Times, via TechCrunch

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