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

posted by Alan F. / May 29, 2013, 1:39 PM

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

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

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80 Comments

1. ajac09

Posts: 1482; Member since: Sep 30, 2009

and so begins the crying.

posted on May 29, 2013, 1:39 PM 31

32. chocolaking

Posts: 495; Member since: May 22, 2012

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

posted on May 29, 2013, 3:12 PM 17

45. bigdawg23

Posts: 467; Member since: May 25, 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 May 29, 2013, 3:48 PM 18

67. sharks

Posts: 236; Member since: Feb 16, 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 May 29, 2013, 10:28 PM 2

70. LionStone

Posts: 1048; Member since: Dec 10, 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 May 29, 2013, 10:53 PM 0

54. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

Lol someone's butt hurt....

posted on May 29, 2013, 4:38 PM 8

64. Silencerzzz

Posts: 21; Member since: Mar 29, 2013

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

posted on May 29, 2013, 7:34 PM 3

3. gwuhua1984

Posts: 1237; Member since: Mar 06, 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 May 29, 2013, 1:47 PM 16

4. osmaankhaan unregistered

Here comes a sucker punch from a butthurt!!

posted on May 29, 2013, 1:47 PM 7

6. rawbow

Posts: 428; Member since: Mar 30, 2012

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

posted on May 29, 2013, 1:49 PM 14

7. raunak

Posts: 507; Member since: Oct 12, 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 May 29, 2013, 1:49 PM 15

12. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 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 May 29, 2013, 2:14 PM 3

66. ph00ny

Posts: 1994; Member since: May 26, 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 May 29, 2013, 9:47 PM 0

8. amats69

Posts: 1527; Member since: Nov 12, 2012

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

posted on May 29, 2013, 1:50 PM 10

9. gallitoking

Posts: 4721; Member since: May 17, 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 May 29, 2013, 1:52 PM 20

14. Chaseism

Posts: 82; Member since: May 08, 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 May 29, 2013, 2:22 PM 11

29. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

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

posted on May 29, 2013, 2:58 PM 9

52. TROLL

Posts: 4851; Member since: Apr 13, 2012

This is jeffthebeat....? Were you banned or something? Hey what's going on in here... ®

posted on May 29, 2013, 4:34 PM 0

79. Chaseism

Posts: 82; Member since: May 08, 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 May 30, 2013, 1:31 PM 0

61. joey_sfb

Posts: 6794; Member since: Mar 29, 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 May 29, 2013, 6:56 PM 1

26. jacko1977

Posts: 428; Member since: Feb 11, 2012

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

posted on May 29, 2013, 2:46 PM 5

30. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

English ?

posted on May 29, 2013, 3:02 PM 2

37. ama3654

Posts: 295; Member since: Nov 27, 2012

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

posted on May 29, 2013, 3:31 PM 5

10. WakaFlakaD

Posts: 575; Member since: Apr 30, 2011

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

posted on May 29, 2013, 1:53 PM 8

11. chistoefurpuffer

Posts: 140; Member since: Mar 11, 2013

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

posted on May 29, 2013, 2:04 PM 15

13. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

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

posted on May 29, 2013, 2:15 PM 9

34. HDShatter

Posts: 1021; Member since: Jan 17, 2013

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

posted on May 29, 2013, 3:16 PM 7

38. Taters

Posts: 6474; Member since: Jan 28, 2013

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

posted on May 29, 2013, 3:31 PM 5

46. stealthd unregistered

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

posted on May 29, 2013, 4:01 PM 6

15. MorePhonesThanNeeded

Posts: 645; Member since: Oct 23, 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 May 29, 2013, 2:27 PM 11

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