Samsung warns of weakened demand for chips, displays amid Apple dispute

“Apple manufacturing partner Samsung has warned of weak growth on chip orders and a downturn on displays, in what could be construed as a evidence of Apple’s alleged plans to transition component purchases away from the competitor with which it is currently engaged in a patent infringement suit,” Josh Ong reports for AppleInsider.

“Samsung executive Kwon Oh-hyun cautioned that the company’s semiconductor and flat-panel display businesses, which provided 70 percent of Samsung’s operating profit last year, are experiencing difficulties, The Wall Street Journal reports… Though reports last week had suggested that the move was a financial decision to hide losses in Samsung’s display unit among profits from its semiconductor business, Kwon’s most recent comments suggest that the company’s chipmaking operations may be faltering as well,” Ong reports.

Ong reports, “Meanwhile, Apple and Samsung are locked in a heated legal battle after the Cupertino, Calif., company sued the Korean electronics giant in April, alleging that Samsung had copied the look and feel of the iPhone and iPad. Last week, the iPhone maker filed for a preliminary injunction that would block for of Samsung’s products while the case is being resolved… Rumors have swirled that Apple is planning to move away from Samsung when it begins production of the so-called “A6″ processor in 2012. Apple will reportedly turn to Taiwan Semiconductor Manufacturing Company for production of the chip.”

Read more in the full article here.

31 Comments

  1. I’m surprised that Samsung didn’t see all this coming. Certainly when they put out their Tab and Galaxy products, that even to the untrained eye look remarkably like Apple products, both in hardware and software terms, they should have expected some response from Apple. Quite unbelievable..

  2. Apple should have known the Koreans would be copiers.

    Look at them, they all look alike. It should have been obvious.

    Those offended by this post should go outside and look for their sense of humor.

      1. They have their own jokes about us. Every culture has jokes about “others”. It’s a human trait. I wouldn’t get to worked up about unless it gets particularly ugly. Implying that we cannot distinguish the difference between individuals of a foreign country or different race, says more about our cognizant capabilities than it degrades the other individual.

      1. Get one! Who gives a rip if the two companies are in a fight. It has nothing to do with you finding a TV or other product that suits your needs.

        No reason to get ’emotionally’ involved with it. Its just two rich corporations throwing blows. Happens every day in every industry.

    1. So you’ve boycotted the iPhone and the iPad? Boycotting Samsung is easier said than done. Unfortunately, supporting Apple indirectly supports Samsung… for now.

  3. Samsung wants to be a player in the high-margin device sector, chafing at being a commodity component supplier. But they don’t invent anything. They get the OS for free from Google and steal the interface for free (they thought) from Apple. Like the mobile service providers wanting to be more than a dumb pipe without any sort of creative ability, trying to become media and app purveyors. Samsung will certainly lose Apple’s supplier business, probably be disallowed from copying iPhone, and may have to pay for Android after the courts get finished with Google.

  4. Samsung has always operated this way, (copy, cheat, steal) but they never had a customer like Apple before. I think there gonna get a rude awaking when it comes to pissing off Apple like they’ve done. As a company they’ve got a lot of irons in the fire, as they try to make/copy everything, so they’re spread pretty thin financially I’d guess. One mistake and the house of card comes down.

  5. Business is business. Apple is flexing its muscle a bit to demonstrate its displeasure with Samsung. Long term, however, it is in Apple’s best interest to have multiple international fabs at its disposal, even if Apple ends up fostering domestic sources of components.

  6. Many overestimate Samsung’s input in Apple business — though it is definitely huge, other suppliers have big chunks, too. Memory comes from Elpida, flash from Toshiba, displays for iPhone 4 and iPad come from LG Display and Chinemei Innolux.

    Yes, Samsung does not have licence for IPS technology, so DigiTimes reports that they provide displays for these Apple devices are false. So Samsung could only use regular TN for its own Galaxy Tab last year, and they only came up with their non-licensed copy of IPS — they call it PLS (lawsuit from Hitachi Display is possible) only this spring. These PLS matrices are used in the new 8.9 and 10.1 tablets from Samsung.

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