Samsung Display said to terminate its contract as Apple supplier next year
0. phoneArena 22 Oct 2012, 09:32 posted on
Unnamed Samsung Display exec allegedly said his company will be terminating the contract with Apple next year, due to the changed relationship with suppliers Cupertino is imposing. Well, that, and one unfortunate lawsuit, too, we'd wager to guess...
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1. AstronautJones (Posts: 303; Member since: 01 Aug 2012)
Probably the best for both, considering current relationship.
Like being a business partner with an ex-wife, not the best idea.
15. Nathan_ingx (Posts: 3873; Member since: 07 Mar 2012)
I'm thinking what took Samsung so long to notice that they have been 'tech-handled' the day Apple started the patent wars?
About darned time!!!
Time to see what Apple comes up with.
Observing mode activated!
17. PhenomFaz (Posts: 1236; Member since: 26 Sep 2012)
Its best for Sammy as there was too much of bad blood between the two. Now apple has to hunt for suppliers and find one that can deliver the quantity at the price which samsung was offering. I think Apple'll have a tough time as display production is huge for samsng and they could afford to supply Apple with huge orders at minimal margins.
As far as what Apple is going to be coming up with...I am going to go out of my way here and say more sub-par handsets with even worse displays :)
21. JeffdaBeat (unregistered)
I didn't think this was much of a news flash...but Apple has been getting their LCDs from LG and Sharp as of recent. While at the top of the year, Samsung was the only producer, Apple soon brought in LG and Sharp. Most of the displays are now made by LG. Samsung LCDs have been reduced dramatically. Apple will be just fine.
Like I said before, this will be a hit to Samsung because Apple was guaranteed business and their number one client. But as you guys said, Samsung and Apple's relationship has been strained probably more than Apple and Google. It's not good to be in the pocket of your competitor.
37. networkdood (Posts: 6330; Member since: 31 Mar 2010)
This is not a hit to Samsung, because they will need the supplies for their own products, which are selling very well.
40. Hemlocke (unregistered)
Samsung makes a lot of A6-toting devices equipped with IPS LCDs?
43. VZWuser76 (Posts: 4358; Member since: 04 Mar 2010)
If apple doesn't order more they're not going to keep making them. And since they're only producing what apple ordered, their current stock is already sold. But nice try on the sarcasm.
38. PhenomFaz (Posts: 1236; Member since: 26 Sep 2012)
moreover samsung has other clients that it supplies to with a bigger profit margin...i know apple had the numbers to provide to samsung with minimal profit margin though, this means sammy can now focus all that qulaity time on selling more displays with a higher profit margin to other clients and for some innovation as well.
as far as apple base goes, it was turning out to be more strenuous for sammy rather than profitable
19. -box- (Posts: 3991; Member since: 04 Jan 2012)
Hope more companies follow suit. While sales are good, most of these suppliers make their own stuff, and if they do not renew their contracts, apple is stuck, and folks can choose from the suppliers' products instead
41. Nadr1212 (Posts: 741; Member since: 22 Sep 2012)
hah, Phonearena mispelled than in the 3rd paragraph
2. MeoCao (unregistered)
Nothing will change dramatically, Apple with their high volume has great power and suppliers do not earn much, in fact few can get much benefits working with Apple.
3. Bluesky02 (Posts: 1439; Member since: 05 Dec 2011)
In short "We're getting rid of them as soon as possible"
31. cheetah2k (Posts: 1582; Member since: 16 Jan 2011)
I feel for Apple users now. They can forget about quality hardware in their precious devices..
4. PowTheBowl (Posts: 86; Member since: 19 Apr 2012)
Hoping to see Apple make all the parts for their products soon, without the help from Samsung, LG, Sharp, and other companies who make parts for Apple's products.
5. Kan_wha (Posts: 88; Member since: 25 Jun 2012)
and watch the price of Apple products double if not triple.
9. nofear (Posts: 151; Member since: 22 Jun 2012)
You are 100% correct! but I am 100% is not going to buy it a product over price and outdated stuff any way.
11. Aeires (unregistered)
When has Apple made all their own parts?
20. -box- (Posts: 3991; Member since: 04 Jan 2012)
@Aeires Never that I know of. Always buying off-the-shelf components or having someone else make them. Arugably when Woz and jobs were making them in garages, but those were still off-the-shelf components
22. Aeires (unregistered)
My thoughts as well. To the best of my knowledge, they may design them, but that's as far as it goes.
26. JeffdaBeat (unregistered)
That's correct. In a nutshell, Apple designs the product, get components from different suppliers, and puts all the pieces together at Foxxcon. Not unusual. *Roller coaster nerd alert* Arrow Dynamics designed roller coasters, but went to Morgan Manufacturing to manufacture and build the ride. Same goes with cars. Rarely is the design firm the same as the builders.
27. Aeires (unregistered)
Agreed. Cars assembled in the U.S. are becoming the norm, but in reality they are manufactured all over the place. Global economy has changed a lot, it's not just Apple doing things overseas, it's all the big corporations.
*Rollercoaster nerd, lol. I thought the correct term was Rollercoaster offianado. ;-)
39. PapaSmurf (Posts: 10457; Member since: 14 May 2012)
+1 to you.
-Roller coaster nerd/enthusiast
32. cheetah2k (Posts: 1582; Member since: 16 Jan 2011)
Apple has never made their own parts, which is why they're able to make massive profits on their devices.. The moment they start making fab lines, will be the day Apple flushes itself down the toilet
13. Topcat488 (Posts: 1396; Member since: 29 Sep 2012)
Then what you're hoping for, is a failed product from Apple... Apple until now has made practically nothing on the iphones, on their own... When they tried look what happens (imaps and such), Apple only takes the credit for what other companies done for them. Give credit where credit is due, but don't say i built this, when others built it for you. Apple is a Chinese product, not built in America...
14. xtremesv (Posts: 297; Member since: 21 Oct 2011)
Dream on! In essence Apple is a marketing company with a lot of cash to threaten suppliers. Samsung won't play their game anymore.
8. nofear (Posts: 151; Member since: 22 Jun 2012)
I'd expected that Samsung could have done sooner than that. Just the boat without a sail.
10. redmd (Posts: 1269; Member since: 26 Oct 2011)
soon we'll have idevices with display issues. lol