Apple paying lesser for screens.
While the legal battles between Samsung and Apple have continued in courtrooms across the world, and gotten uglier as time goes by, on the business side it’s known that Samsung and Apple work pretty close. After all, for most previous generation iDevices, Samsung has been the supplier of processors and LCD screens. And while the processors will move from Samsung to Apple in 2014, it seems that the LCD supply will stop by next year itself.
A Samsung employee told The Korea Times that as Apple continues to pay less for LCD screens, it makes no sense to supply them anymore. So much so that that 15 million panels supplied to Apple by Samsung in the first half of this year shrunk down to under 3 million in the previous quarter. “We expect the quarterly shipment in the fourth quarter to fall to some 1.5 million,” the unnamed Samsung employee told The Korea Times newspaper. indeed the upcoming iPad Mini will not have any panels supplied from Samsung at all.
The decrease in business from Apple will be compensated by an increase in orders from Samsung’s own mobile division for their own smartphones and tablets while other customers like Amazon are also looking to ramp up demand for LCD panels. Meanwhile as Apple slides away from Samsung, it seems that Panasonic may well take up the empty place and supply Apple with their LCD panels, as the Japanese giant stated earlier this year that they are moving out of the TV business altogether.