Update 10/22/2012 – (8:10 p.m. PST): Samsung is denying that it stopped selling display components to Apple, a company spokesperson told Cnet. The news was originally reported by the Korean Times, who cited an anonymous source familiar with the matter. (Below is VentureBeat’s original story.)
The Samsung-Apple relationship has gone from bad to worse.
Samsung Display is cutting its ties with Apple, which will no longer use Samsung’s displays in its products, reports the Korea Times.
“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,” a Samsung source said.
Basically, Apple has such an uncompromising grip over its supply chain that it’s crushing Samsung’s margins. While ending such an arrangement is a sound business move, that Samsung and Apple have become mortal enemies certainly makes the decision a lot easier.
The separation, however, probably won’t affect either company too much. For one, Apple has relied less on Samsung for displays in recent months and has instead been looking to companies like LG and Sharp to pick up the slack.
Samsung Display, too, should be unaffected, as the division has been getting a lot of work from not only Amazon but Samsung’s phone division.
Unsurprisingly, the news also means that Samsung is unlikely to be the company behind the display on the iPad Mini, which Apple is expected to announce this week.
Photo: Devindra Hardawar/VentureBeat