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HTC says Samsung used its position as a supplier to gain a competitive edge

Posted: , by Alan F.

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HTC says Samsung used its position as a supplier to gain a competitive edge
HTC's president of North Asia, Jack Tong, probably won't be getting a card from Samsung during this year's holiday season. Tong accused the Korean manufacturer of using its position as an HTC supplier to gain a competitive advantage over the Taiwan based firm. Tong says that this took place when Samsung was supplying AMOLED panels to HTC for the HTC Desire, which was launched in the first quarter of 2010.

The HTC Desire

The HTC Desire

In Taipei for a local forum on mobile broadband, Tong went on to say that once the device was "welcomed" by both customers and carriers, Samsung turned the spigot off and stopped supplying the panels to HTC. The executive said that the handset manufacturer learned a lesson from that. "We found that key component supply can be used as a competitive weapon," he said. Taiwan's Ministry of Economic Affairs said at the beginning of the year, that it hoped to help local companies develop their own supply chain to avoid situations like this one.

A similar situation occurred during the same year with Verizon's HTC DROID Incredible. Originally offered with an AMOLED screen, the phone was pulled from Verizon and brought back with a Sony-made Super LCD panel after Samsung said it could no longer supply HTC with the AMOLED screen. As it turned out, Samsung was said to be diverting production of the screen to its own handsets.

source: FocusTaiwan via BGR

80 Comments
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posted on 29 May 2013, 13:39 31

1. ajac09 (Posts: 1367; Member since: 30 Sep 2009)


and so begins the crying.

posted on 29 May 2013, 15:12 17

32. chocolaking (Posts: 453; Member since: 22 May 2012)


Samung = lied = fake
i have absolutely no respect to sammobile, and samsung electronics.
but the original samsung corporation.

posted on 29 May 2013, 15:48 18

45. bigdawg23 (Posts: 382; Member since: 25 May 2011)


Its called develop your own technology and screens to avoid that situation. This situation had nothing to do with the downfall of HTC. HTC design of phones until the Droid DNA and HTC One lacked interest from its long time customers. This resulted in them shifting to Samsung and Apple. I had the HD2, which I liked other than battery life. Its versatility was great. Then I tried both the HTC Inspire and Vivid. Both of those phones sucked on battery life and HTC Sense. Touch Wiz has come along way leading to a shift, along with many other hardware features.

The HTC One is a nice phone and gained my interest again. However, I am not a fan of blink feed and some of the Sense features. I wish they would launch a device like the GS4 with an unlocked base Google phone. This would draw a lot of interest.

posted on 29 May 2013, 22:28 2

67. sharks (Posts: 164; Member since: 16 Feb 2013)


You do realize that you can turn your HTC One into a Google edition quite easily through modding.

This article makes me want to buy HTC products from now on. I never liked AMOLED displays for their oversaturated colors and greyish whites. IPS and SLCD win over AMOLED easily.

posted on 29 May 2013, 22:53

70. LionStone (Posts: 452; Member since: 10 Dec 2010)


This absolutely has an effect... If production halts, phones don't get made, don't get sold... Money doesn't come in, growth is slowed.

posted on 29 May 2013, 16:38 8

54. WHoyton1 (Posts: 1622; Member since: 21 Feb 2013)


Lol someone's butt hurt....

posted on 29 May 2013, 19:34 3

64. Silencerzzz (Posts: 21; Member since: 29 Mar 2013)


Chocolaking = lied = fake
Everyone have absolutely no respect for you.

posted on 29 May 2013, 13:47 16

3. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)


This is very old news, Samsung was also charging an arm and a leg for AMOLED. The same reason why HTC Desire HD switched to S-LCD instead of the originally announced display: AMOLED. This was all part of the "kill Taiwan businesses" strategy.

posted on 29 May 2013, 13:47 7

4. osmaankhaan (unregistered)


Here comes a sucker punch from a butthurt!!

posted on 29 May 2013, 13:49 14

6. rawbow (Posts: 428; Member since: 30 Mar 2012)


are these guys still in school! grow up...HTC you are better than this

posted on 29 May 2013, 13:49 15

7. raunak (Posts: 505; Member since: 12 Oct 2011)


Nokia also said something similar and Apple also wants to go away from Samsung. I think the fault is with The thief company.

posted on 29 May 2013, 14:14 3

12. RaKithAPeiRiZ (Posts: 1352; Member since: 29 Dec 2011)


Even 3rd party companies like Meizu have to wait in line to get Exynos processors , so clearly they have a huge edge over the competition , but what does Samsung expect ....a New S-World Order ?

posted on 29 May 2013, 21:47

66. ph00ny (Posts: 604; Member since: 26 May 2011)


Are you saying Samsung didn't save apple from botching two separate ipad product launches by supplying them the screen when other suppliers were struggling with the yield rates? This was in the midst of litigation

posted on 29 May 2013, 13:50 10

8. amats69 (Posts: 1083; Member since: 12 Nov 2012)


oh... after hearing on the students that paid by Samsung im not surprise anymore with this news...

posted on 29 May 2013, 13:52 20

9. gallitoking (Posts: 4690; Member since: 17 May 2011)


Samsung is known for doing that. thats why Apple wlil no longer be a customer... Samsung use their supplier position to gain advantages..

posted on 29 May 2013, 14:22 11

14. Chaseism (Posts: 79; Member since: 08 May 2013)


...can't believe I'm about to defend Samsung...but...that's why you should never get in bed with your direct competition. Sure, starting out, Apple could use Samsung all they wanted. But they should have very quickly gotten out of business with Samsung and found someone else. HTC and Apple together. Regardless of legality, I wouldn't have my competition as my supplier.

posted on 29 May 2013, 14:58 9

29. RaKithAPeiRiZ (Posts: 1352; Member since: 29 Dec 2011)


i guess HTC wasn't expecting their open handset alliance buddy to be cruel in the long run .

posted on 29 May 2013, 16:34

52. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


This is jeffthebeat....?

Were you banned or something?

Hey what's going on in here...

®

posted on 30 May 2013, 13:31

79. Chaseism (Posts: 79; Member since: 08 May 2013)


I stopped posting on here for a while. During that time, I changed my name. Reflected the change with a new username. Same guy though...

posted on 29 May 2013, 18:56 1

61. joey_sfb (Posts: 3001; Member since: 29 Mar 2012)


Samsung is also buying components from other components manufacturers. I think their electronic business as a whole has out growth their components manufacturing capacity.

Anyway, HTC is a big mobile business i sure they should be able to sort out their supply issue.

Tim Cook is very good at supply sourcing and therefore now the CEO of Apple.

posted on 29 May 2013, 14:46 5

26. jacko1977 (Posts: 394; Member since: 11 Feb 2012)


its called look after urself first htc is sooking coz there not getting orders first

posted on 29 May 2013, 15:02 2

30. RaKithAPeiRiZ (Posts: 1352; Member since: 29 Dec 2011)


English ?

posted on 29 May 2013, 15:31 5

37. ama3654 (Posts: 249; Member since: 27 Nov 2012)


Apple is going back to Samsung Because others cannot cope.
http://www.technobuffalo.com/2013/05/28/apple-samsung-display-partnership/

posted on 29 May 2013, 13:53 8

10. WakaFlakaD (Posts: 366; Member since: 30 Apr 2011)


It's really too bad that many companies had chose Samsung as their supplier... Samsung is just trying to win

posted on 29 May 2013, 14:04 15

11. chistoefurpuffer (Posts: 139; Member since: 11 Mar 2013)


It's called business and competition HTC... Welcome to the smartphone market. Get used to it.

posted on 29 May 2013, 14:15 9

13. RaKithAPeiRiZ (Posts: 1352; Member since: 29 Dec 2011)


its more like cheating , they are letting their paying customers down

posted on 29 May 2013, 15:16 7

34. HDShatter (Posts: 1021; Member since: 17 Jan 2013)


Thats competition kid, get over yourself already Samsung is much better than HTC when it comes to customers.

posted on 29 May 2013, 15:31 5

38. Taters (Posts: 3229; Member since: 28 Jan 2013)


Cheating implies it being illegal. Sounds perfectly legal to me.

posted on 29 May 2013, 16:01 6

46. stealthd (Posts: 968; Member since: 12 Jun 2011)


It's called antitrust, and it's illegal in most places.

posted on 29 May 2013, 14:27 11

15. MorePhonesThanNeeded (Posts: 623; Member since: 23 Oct 2011)


Interesting read, so it's Samsungs fault that they don't just build phones but they built the major components that go into them. It's called being versatile and since Samsung has the power to reach out and have manufacturing that allows them to build their devices with almost all homegrown parts that's supposed to be wrong?
I don't have a great dislike for Samsung but they are like any other company and that is a business in this to make money and you can only do that by having consumers like your products. Amoleds are nice, I prefer IPS LCDs and Super LCD 3 but to each his own, I dislike Touchwiz the most over the skins I have used on Android phones with Sense in a close second, sure Samsung does a lot of cool things, but not everything is rosy. I still won't buy any of their phones. They just don't appeal to me, even if they are pretty sweet devices just not my thing. Right now I sport a DNA it's great but held back by Sense 4.0 and it's still on 4.1.1, thanks HTC and Verizon.
Samsung do what you have to, HTC stop making the same gaffes every time you get a great device together. DNA has this s**t battery and it's made worse by Sense draining your battery with all it's stupid and inane processes that you never wanted on in the first place, I had so many disabled processes it's borderline ridiculous. I just hope Google keeps improving Android even more so that base android has everything you need in a smart phone and all the rest just head to the app store, How the hell you have a phone without a file manager is beyond me. Utterly ridiculous. HTC I'm looking at your with Sense 4.0 on the DNA...

posted on 29 May 2013, 14:35 3

19. WakaFlakaD (Posts: 366; Member since: 30 Apr 2011)


Why did you brought up Verizon and Google? Did you miss the memo? This article only talks about the way Samsung supply HTC. It pretty much points out that Samsung would use the "indirect" way, in this case the supply on the screen panel to affected HTC in their productions.

posted on 30 May 2013, 11:38

72. saiki4116 (Posts: 356; Member since: 31 Mar 2011)


Why Should not Samsung control AMOLED supplies, after all it's because of continuous their R&D and huge investments, that made the technology available..Why should they give away to their competitor..

posted on 29 May 2013, 14:45 7

25. leaderpvp (Posts: 17; Member since: 26 May 2013)


I really support you. Samsung is not such a comfortable for me too. The touchwiz, the oversaturated amoled. at most i just hate their aggressive marketing politics that they inherit from apple. :-/

posted on 29 May 2013, 15:17 5

35. HDShatter (Posts: 1021; Member since: 17 Jan 2013)


Anyone that is againist Samsung/any other company being better at doing certian things than their fanboy loved company is a communist.

posted on 29 May 2013, 14:28 8

16. b1acktiger (Posts: 207; Member since: 19 May 2012)


Even after Samsung pulling the AMOLED panels, HTC still have the best display technology in their play ground. Appreciate that you learned when you fell and stood up even stronger.

posted on 29 May 2013, 15:34 4

39. Taters (Posts: 3229; Member since: 28 Jan 2013)


I wouldn't be surprised if Samsung is a supplier to whoever makes the screens for HTC. They did own the super LCD plants before.

posted on 29 May 2013, 22:31

68. ngo2dd (Posts: 786; Member since: 08 Jul 2011)


They are not it is JDI a japanese company.

posted on 30 May 2013, 12:39

77. Taters (Posts: 3229; Member since: 28 Jan 2013)


JDI mostly likely used Samsung display before. Some parts at least.

posted on 30 May 2013, 12:29

75. b1acktiger (Posts: 207; Member since: 19 May 2012)


You didn't noticed the article that HTC learned from that fall. Do you think HTC will commit the same mistake again ? Also there was a article in PA that HTC wont buy parts from competition. It was mainly targeted for samsung.

posted on 29 May 2013, 14:34 4

17. Whateverman (Posts: 3223; Member since: 17 May 2009)


Ahhhhh... Yeah, I could believe that. They've been know to do some really shady things to its competitors, so I could see this happening.

posted on 29 May 2013, 14:34 3

18. WakaFlakaD (Posts: 366; Member since: 30 Apr 2011)


Koreans are stepping up

posted on 29 May 2013, 14:39 4

20. RaKithAPeiRiZ (Posts: 1352; Member since: 29 Dec 2011)


even consumer electronics (Tv's , refrigerators) and even cars (Kia and Hyundai are really kicking Nissan and Toyota on their bonnets )

posted on 29 May 2013, 17:01 1

58. WakaFlakaD (Posts: 366; Member since: 30 Apr 2011)


Not sure about kicing butts, but Koreans has been doing amazing the past 10 years.

Gangnam styyylllleezzzzzzzzz

posted on 29 May 2013, 14:39 6

21. flamencoguy (Posts: 97; Member since: 04 Aug 2012)


Just stop selling to Apple

posted on 29 May 2013, 16:36 3

53. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Every company should stop selling to Apple!
®

posted on 29 May 2013, 14:39 4

22. giani (Posts: 269; Member since: 13 Nov 2012)


"sammy" trolls...this just makes me sick ! 2 years ago you would have shown disgust at the likes of apple for similar practices and now... EVERY day i would have heard innovation..innovation..patent trolls...the consumers are suffering... how times change and then so do the blind fanboys...

LETS be clear... business is business BUT...if your beloved sammy..thanks to the millions of blind trolls...managed to become the most important player in the mobile phone industry...is using dirty tactics...from controlling supply chains..marketing ..etc to hit the competition or any body else who dares to stand a fighting chance...how the fuq is this different ???

posted on 29 May 2013, 14:45 3

24. RaKithAPeiRiZ (Posts: 1352; Member since: 29 Dec 2011)


this can be very bad for the future of Android , currently they hold a major monopoly , yes Samsung devices were great and i have to admit the s2 was great , but since last year Samsung started to become the new apple and gained sympathy after the lawsuits and the "designed for humans" commercials ,but what really got me boiled up was the fast that they play dirty to win , sometimes sneering the competition with paid students , component shortages , paid 50 cent fanboys and so on , so its more likely that the "other " android manufacturers might consider another option (Jolla or a modified version of WebOS,firefox might be a alternative )

posted on 29 May 2013, 14:50 4

27. leaderpvp (Posts: 17; Member since: 26 May 2013)


Sammy will fall like apple does, when customers will realize that the marketing sammy feed them with is a pure s... oops, marketing:)
The most interesting thing is who is next to step on the 1st place =)

posted on 29 May 2013, 14:55 1

28. RaKithAPeiRiZ (Posts: 1352; Member since: 29 Dec 2011)


might probably be either Sony or HTC ,maybe they can help eachother out (Sony getting display technology from HTC and HTC getting camera modules )

posted on 29 May 2013, 15:41 2

42. Taters (Posts: 3229; Member since: 28 Jan 2013)


Sony would give HTC display technology and not the other way around. HTC doesn't have a display division. Lol

No wonder these moronic HTC fans hate Samsung. They have no clue what they are talking about.

posted on 29 May 2013, 16:02 2

47. giani (Posts: 269; Member since: 13 Nov 2012)


do you get a hard on when you touch that nice shinny plastic ?

posted on 30 May 2013, 11:41

73. saiki4116 (Posts: 356; Member since: 31 Mar 2011)


funny u got thumbed down for showing a fact..

posted on 30 May 2013, 11:58

74. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)


He probably got thumbed down for calling other people moronic. Not exactly friendly sounding if you ask me.

posted on 29 May 2013, 15:39 3

40. Taters (Posts: 3229; Member since: 28 Jan 2013)


Samsung doesn't sue everyone and offer us dual cores and 1 GB of ram for then price octacores and 6 GB of ram. There is a huge difference to Apple practices and Samsung practices.

If you can't see that you are a moron.

Samsung is giving us big bang for the buck, simple as that. Their high end TVs are the same price as others mid range TVs and their expensive products have class leading specs. Simple as that.

posted on 29 May 2013, 15:47 2

44. chocolaking (Posts: 453; Member since: 22 May 2012)


i am actually laughing hard, of you have been BRAINWASHED ! !!

posted on 29 May 2013, 16:09 1

49. Taters (Posts: 3229; Member since: 28 Jan 2013)


Look in the mirror. Lol what I say is 100% factual. A lot of Sony TVs had Samsung panels but were going for 1 - 200 more. Those are facts but you are too stupid know that and are probably not in the electronics business.

posted on 29 May 2013, 22:35

69. ngo2dd (Posts: 786; Member since: 08 Jul 2011)


I guess you are the dumb one. SLCD was joint venture between the two company. But as of a year or two Samsung brought the rest of the share out. Most Sony planels are from them they is why it call a bravia. Or from JDI another joint venture. From someone who lied all the time. I am surprised no one call you out on it.

posted on 30 May 2013, 12:38

76. Taters (Posts: 3229; Member since: 28 Jan 2013)


I have no idea what kind of idiotic spew you are talking about. If Samsung bought the rest of the shares out then how am I wrong. Learn to read moron.

posted on 29 May 2013, 16:24 2

50. number29 (Posts: 185; Member since: 25 Jan 2013)


You've fallen for the hype, good sir :)

posted on 30 May 2013, 12:41

78. Taters (Posts: 3229; Member since: 28 Jan 2013)


Nope just facts. Many Sony TVs use Samsung panels and cost 1-300 dollars more. Fact.

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