Reports from the Korea today are suggesting that Samsung Displays have already taken the internal decision to stop / terminate an ongoing contract with Apple, which means that the company will no longer serve the Cupertino-based giants with Liquid Crystal Display panels (LCD) for their iOS mobile devices. Though both Apple and Samsung are a long-term partners from years, but has seen the two companies reducing their component supply deals is now extending to LCD panels, with Samsung reportedly ending supplies of the panels to Apple next year.
Samsung Displays in the last few years benefited from being one of the major components supplier to Apple. But as iPhone company makes its move to shiften up their supply chains and reduced higher profits out of their processes. Samsung has heaten up with this situation, rather than supplying the panels at the current rate and generating a smaller income front the deal. The Korean Manufacturer, Samsung seems to take action rather than taken larger and possibly controversial step of walking away from the deal however.
An unknown Samsung employee who is said to hold a senior management position within the company has moved quickly to confirm the speculation
“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,” said a senior Samsung source, asking not to be named, Monday.”
Though Samsung has already far been the largest LCD panels provider to Apple this year, tghe iPhone makers have placed a higher depending on the likes of LG and Sharp for their display technology, means Samsung will obviously falling down the supply pecking orders.
Still the company has a large portion of the Samsung Display revenue stream, when considering Apple’s orders, and it might be true that the company has found yet another alternative business in the form of Amazon and Samsung Electronics who have their LCD panels provided by Samsung Displays.
Anyhow, there is no word either from Apple about the legitimacy of the reports, but its’ widely expected that 100% of Apple’s LCD panels will be supplied by alternative companies come next year to scene. (Via Redmondpie)