“Samsung Display said Monday that it will terminate its contract with Apple and no longer supply liquid crystal display (LCD) panels to its long time partner,” Cho Mu-hyun and Kim Yoo-chul report for The Korea Times. “The news comes as speculation is mounting over a rift between the two firms that have shared a long relationship in electronic components.”
“The display panel manufacturer plans to completely cut its years-long business ties with Apple as it believes its American partner is no longer a cash-generator due to the iPhone maker’s stiffer supply-chain management structure,” Cho and Kim report. “The Cupertino, California-based firm has been lowering its reliance on Samsung-manufactured displays for use in its popular i-branded devices as it is leveraging its influence to source components from Samsung’s rivals attracted by better pricing.”
Cho and Kim report, “Samsung Display was the top supplier to Apple as of the end of the first six months of this year, shipping over 15 million LCDs, followed by its biggest rival LG Display with 12.5 million and Japan’s Sharp with 2.8 million, said market research firm DisplaySearch. ‘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,’ said the source, who is directly involved with the matter.”
“Samsung Display didn’t provide panels for Apple’s new iPad — tentatively named the iPad Mini. The new tablet will have a 7.85 inch screen, which was exclusively reported by The Korea Times in March this year,” Cho and Kim report. “‘Although we are losing Apple business, Samsung looks safe as we found the right alternatives — Amazon and Samsung Electronics’ handset division,” stressed the source.'”
Read more in the full article here.
MacDailyNews Take: Apple dumped Samsung.
Apple dumped Samsung because they lie, cheat, and steal and they should not be doing business with liars, cheaters, and thieves, as we’ve been saying for quite some time.
This Korea Times “report” is the equivalent of a girl claiming she broke up with her boyfriend on Monday after he dumped her for serial cheating a week ago.
STFU, Sammy, you lying, cheating, pitiful slut.
(And, any hopes of replacing Apple’s iPad business with Amazon’s falls firmly within the purview of the morbidly insane.)
[Thanks to MacDailyNews Reader “Joe Architect” for the heads up.]
Related articles:
Panasonic to exit TV market, hopes to build LCD panels for Apple’s iPad – report – October 16, 2012
Apple gets serious about reducing, eliminating orders from Samsung – October 15, 2012
Apple plots course to dump slavish copier Samsung from supply chain; looks to TSMC to stamp out processors – October 4, 2012
I believe that Apple uses LG panels for its iMacs and Cinema Displays. I’m not sure if LG and other manufactures supply the Retina screens for Apple’s laptops.
Gotta love it! Apple diversifies away from such a strong reliance upon a competitor — good business move — and Samsung reacts emotionally — bad business move. And a huge win for Apple since they don’t have to invoke their close-out clauses.
When iPad mini kills off Amazon tablets, this will be a double whammy for okay’ Sammy!
Yes. Apple is dumping Google too! Nice to see Tim and the board Manning Up!
It’s not as though they are “manning up” overnight. It takes time to work out the supply chain issues and if Apple has acted emotionally like Samsung does and yanked everything from Samsung prematurely they wouldn’t have had products or as many products to sell. You know Jobs also had a hand in starting this too but Tim did the responsible thing by waiting until it was feasible and now we see the fruits of those labors. Good news is that day has finally arrived to all out satisfaction. Love how Samsung is trying to pretend they dumped Apple first! I get a big cruel chuckle out of that, and no one is fooled except rapid Apple Haters and Fandroid.
Read the CNUTs, ZDNUTS and Yahoo boards… the iHaters are spinning this completely as a Samsung BOLD move that will destroy Apple source supply.
amazing take!! Samsung is almost comedic. almost.
Agreed. It begs the questions, why would Samsung “terminate” a contract with one of its largest customers.
What, was Apple late in making their payments? Did Apple insist on having the LCD panels shipped in white boxes instead of brown ones? Or maybe did Samsung put a new sign on their corporate headquarters stating: “We reserve the right to refuse service to anyone.” ??
I think it’s more like “You can’t break up with me, I’m breaking up with you!”
My suspicion is that Apple already has( had) alternative sources of LCDs in the works at the flick of a switch much like the switch from PowerPC to Intel chips when the time was right. They had to be prepared for such a contingency when the lawsuits volly was initiated. Maybe thats what all the secrecy is in the new buildings being constructed. We will all know soon enough.
I used to like Samsung. But lately I have had it up to -HERE- with them.
LG has been around forever under the brand name Goldstar. Ever remember the JC Penny branded TV sets? Yep, they were Goldstar.
My next TV will be either Sharp or LG, if the Sony I want is too expensive. I hope these companies stand by honorable measures and keep to their contracts and not steal from the hand that feeds them.
Before Goldstar they were Lucky Goldstar.
I wanted a TV for the bedroom as I already had a 60″ Samsung for my TV room. A 40 incher from Samsung looked nice and the price was right but I said screw them and bought a Sony Bravia. It cost a little more but there was a HUGE difference in quality. Huge.
I am glad I switched. Maybe this could be the next Mac-PC like change…..I switched, did you?
I just bought a LG 47″ LED TV for the bedroom over the weekend. I’ve generally bought Samsung products (fridge, dishwasher, washer and dryer) and my last 46″ tv was a Samsung for the den. It really felt great to bypass Samsung, and I actually love the LG TV!! I won’t be giving Samsung anymore business, and I’m proud to say it stared last weekend!!
Please help me with this! I am shopping TV’s now and I I keep finding myself looking at Samsungs. UUUUGH!! I’m afraid of Sony because of an experience I had Courtyard Marriott Hotels. I created a presentation on my iPad that I was going to present via AirPlay with my AppleTV on the large Sony flat screen in the conference room we rented. My AppleTV wasn’t recognized by the TV. I was informed by management that their Sony TV’s were not compatible with Apple products!!!
“Speculation of a rift?” No Sh&t.
Any statement that Apple is moving displays away from Samsung, because of a rift is moronic.
Samsung’s statements, an the article both strongly suggest that the reason for the move is lower cost. Apple isn’t about to pay more elsewhere to “punish” Samsung.
“(Apple) is leveraging its influence to source components from Samsung’s rivals attracted by better pricing.”
“(Apple) is no longer a cash-generator due to (Apple’s) stiffer supply-chain management structure (AKA price requirement)”
Still, you can’t possibly think that the ongoing legal battles are making the companies cozy with one another.
There are companies I won’t do business with, even though it would be cheaper. I won’t buy Netgear *anything* after the CEO made fun of Steve Jobs being ill. That was it for me and Netgear and they were a good, solid, no frills network product company. I won’t use GoDaddy because the CEO is a total dick. I think that Apple’s reasons to be upset with Samsung/Google (i.e. going thermonuclear), are far more substantial.
You are talking two different things. There are only 10 reasons to be in business, the first is to make a profit…the other 9 don’t count.
Notice that Apple did not move its Samsung production until it had an alternative that cost LESS.
There is no place in business for emotional like and dislike issues. The only issues that count are capabilities and price. Over time others achieved Samsung’s capabilities…at a lower price. Apple made a business decision that had direct bearing on the profitability of its products, without regard to emotional personality likes/dislikes.
Good for you, TMac. I also use a moral compass in investing decisions. Although I missed profiting in some circumstances, overall have won beyond my wildest dreams, including a half-ton of AAPL in the single digits.
Can you imagine CISCO buying stuff from Juniper/Huawei, OR Intel buying stuff from AMD just for pricing?
Didn’t think so.
Apple: “You’re fired, Samsung.”
Samsung: “Oh yeah? Well, we quit.”
Apple: “You can’t quit; you were just fired. Security will escort you out of the building.”
Samsung: “Fine… Well… We’ll just tell everybody we quit, then.”
When I first read this article, I thought, “Nice Spin” on reality. Yeah, right, Dingdong dumped Apple – Sorry, you have no reality distortion field to cloud our minds. Oh yeah, I bet that Amazon is really going to buy enough parts to make it up, good luck with that one, Dingdong.
Considering that Apple sells 90% of all PCs over $1000 I don’t think Samsung will have much of a market for their Retina display panels for PCs.
Doubt they’ll see much of any Retina sales.
That will hurt margins. Margins coming from the high end.
I don’t know what apple is really up to. Samsung, LG are all Korean companies. They are the biggest LCD makers in the world. Apple literally loses a good support. Apple will suffer from supplying just like iPhone 5. Those of you seem stupid. What makes you think that apple takes advantage of? Apple doesn’t manufacture nothing. They all do contract. If they lose a good suppliers, their business will be doom. Don’t you know? Apple fanboys are so pathetic.
No Edward, paid astroturfers are pathetic.
The GP will not stand for uneducated trolls! “I speak good English, no?”
No, (E)edward – your fscked up excuse for English is truly pathetic.
What did you just say? Whaaaaaa.
Please take some english lessons before you try to post here again. You sound like an uneducated idiot!
But I just love MDN’s take and is worth repeating,,,,,
STFU, Sammy you lying, cheating ,pitiful slut.
Guys, be nice. You’re better than that.
Thelonious you are right…, but people just get so tired of Edward, me included. But as I said in a previous post…. If you feed the monkeys they keep returning..
I just love hearing good news on Monday morning!
AAPL is up something like $17 today.:-)
Approaching $20 now. Oh, the humanity of it all. Had AAPL finished at these levels on Friday I would be a very, VERY, happy camper today.
Gregg, as we discussed on the new AFB, Friday was OE. It was important to somebody with some economic clout that AAPL finish where it did Friday.
http://m.youtube.com/#/watch?v=YK4t1377ZK4&desktop_uri=%2Fwatch%3Fv%3DYK4t1377ZK4
Can’t blame Samsung for putting out a statement to try to spin the situation. Standard practice, even if no one believes it.
Standard practice in a culture where appearances are everything. When challenged you huff and puff and threaten. When dumped for being inferior you simply tell lies and pretend it didn’t happen.
Ha, ha, ha… Samsung got dumped.
Who’s kidding who? Nice spin losers.
It was announced last week that Panasonic was shutting down it’s flat panel TV line to make displays for Apple. The replacement is already teed up.
Lol, Samsung dumping Apple?
Hell hath no wrath like a lyin’, thievin’ supahbitch scorned.
I love it.
LCD going, Apple CPUs gone, next flash RAM. How many new customers will Samsung need to make up for the loss of Apple business? When this loss of business is added into the cost of producing copycat devices, just how profitable are those devices now?
You forgot to factor in the $3 Billion judgement against them, as well as the loss of consumer confidence in their brand and resultant loss of sales across their consumer product lines.
An expensive decision to slavishly copy Apple indeed!
Good bye SamSing 🙂 they will not get any business from me!
Patent grabber is what that Korean company is!!!
AAPL is a great Buy right now because 2013 = $829/ share 🙂
Firstly this pretty much makes a lie of Samsungs “strong firewall separation” between their commercial and legal arm.
Secondly this could result in a massive anti-trust violation as sellers are required to sell to buyers. Refusing to sell is not smart at all.
Thirdly this will do immense harm to Samsungs already tarnished business reputation. Who wants to still rely on Samsung now?
Samsung will come to wish they hadn’t ventured outside of the noodle making business.
There must be a serious problem with senior management at Samsung that sooner or later will require dismissal .
Samsung’s largest customer was Apple and any business which looses you your largest customer is a huge failure on their part .
Really really stupid and incompetent .
“Why make billions when you can make… millions!”
[pinky in mouth]
Would be nice if that happened, but as Jean Louis Gassee reminds us:
“Let’s not forget who Samsung is and how they operate. This is a family-controlled chaebol, a gang of extremely determined people whose daring tactics make Microsoft, Oracle, Google, and Apple itself blush. Chairman Lee Kun-hee has been embroiled in various “misunderstandings.” He was convicted (and then pardoned) in a slush fund scandal. The company was caught in cartel arrangements and paid a fine of more than $200M in one case. As part of the multi-lawsuit fight with Apple, the company has been accused of willfully withholding and destroying evidence — and this isn’t their first offense. Samsung look like a determined repeat obstructor of justice.”
In other words : they don’t care. Winning is everything.
Samsung just resigne to spend more time with their family.
“STFU, Sammy, you lying, cheating, pitiful slut.”
It would be nice if MDN would state their opinion.
MDN Take: “And, any hopes of replacing Apple’s iPad business with Amazon’s falls firmly within the purview of the morbidly insane.”
—
Not at all. Now Samsung doesn’t have to produce stuff to the same exacting standards that Apple demanded. So, they don’t need to spend as much on QC, and their profit remains the same.
Not sure the profit will remain the same if Amazon becomes their next biggest customer. Amazon can be pretty ruthless with their suppliers, no margin left unsqueezed.
Remains same-ish, then. I’m sure Apple had the clout to squeeze margins, too, but Samsung still made millions off of Apple.
The difference is Amazon doesn’t care about work conditions or child labor and neither does the media anyone who should.
They treat their own warehouse staff pretty badly even In civilised countries with long hours and terrible conditions.
I’d like to know how the Kindles are made.
Adios you asslanted lying assdog fuckers. Take it up the ass.