LG reportedly losing some Apple iPad 2 display orders to Samsung

LG reportedly losing some Apple iPad 2 display orders to Samsung
Apple is switching the source of  9.7 inch displays for the Apple iPad 2, replacing LG with fellow Korean firm Samsung. LG's screens have failed a 'drop test' during which the blacklight units failed. Additionally, LG was unable to get the yield rate up to the level that would meet Apple's requirements. The story, which was published by DigiTimes and has not been confirmed by any of the parties involved, noted that LG had shipped between 2.5 million and 2.6 million of the screens in July, well short of the 4 million per month that Apple had expected from the company. On the other hand, Samsung is said to have shipped 2 million units last month, double the amount that was expected from them.

While Samsung is a great choice in theory for Apple to order the screens from, the two are engaged in a vicious legal battle involving patent infringements that has turned nasty. Also, Samsung's Galaxy Tab 10.1 tablet competes in end markets with the iPad 2. Another choice would be CMI which has affiliate status with Foxconn, the contract manufacturer that assembles the tablet. However, CMI's monthly target is just 1 million screen per month and this will be raised to 1.5 million screens produced per month

In the last quarter, Apple doubled the number of iPads shipped to 9.25 million as the prior three month period saw Apple afflicted by a major backlog. According to DigiTimes' sources, LG could retain its status as lead source for the displays, but only if the current problems can be solved quickly.

source: DigiTimes via AppleInsider

Related phones

iPad 2
  • Display 9.7" 1024 x 768 pixels
  • Camera 0.7 MP / 0.3 MP VGA front
  • Processor Apple A5, Dual-core, 1000 MHz
  • Storage 64 GB
  • Battery 6944 mAh



1. ArmageddonX

Posts: 96; Member since: May 11, 2011

The irony here is almost too much to handle.... lol... Lets see, Apple has "patent" lawsuits against Samsung, HTC, & Motorola... but not LG? Interesting. Maybe because they provide Displays for them? How much you wanna bet the Samsung lawsuits get dropped if they become the primary provider of iPad Displays? Apple is the devil of the computing world.

20. jinwons

Posts: 95; Member since: Nov 24, 2010

Samsung is already Apple's largest semiconductor chip supplier. They supplied to apple nearly 8 billion worth of flash memory, RAM, A4 processors last year. I think this lawsuit against them is Apple pressuring them to lower the cost of chips.

2. gallitoking

Posts: 4721; Member since: May 17, 2011

money talks.... watch how Sammy will make more money selling the screens to Apple than making money out of their recently banned galaxy tabs... join the enemy folks... as the Cobra and Gi. joe did in the episode.."Worlds Without End"

3. clevername

Posts: 1436; Member since: Jul 11, 2008

Why doesn't the word rumor appear anywhere in here. The article says there is no confirmation. That means rumor. Subpar reporting here.

10. davecann2

Posts: 460; Member since: Mar 15, 2011

I dont know... But I feel that the phrase "no confirmation" implies it could be a possible rumor.

4. darth8ball

Posts: 520; Member since: Aug 02, 2011

As I have posted on this site before in multiple discussions. Apple wanted the new SuperAmoled Plus display for their iPhone5. Samsung said no thank you to the order, wanting to have the GS2 and their Gtab 10.1 visually different from the Apple products. Apple didn't like being told no and began the barrage of legal suits to force Sammy to fall in line behind "the Jobs". I am an Italian American who knows these tactics, I know that they are used by the govenment, and Corpoate America, but they were always deemed "illegal" as mob tatics I guess it's just what your name is as what you can do in business.

7. 530gemini

Posts: 2198; Member since: Sep 09, 2010

There is no statement from Apple that they wanted Samsung's super amoled displays and that Samsung said "no thanks". Unless of course you can show us your source. I don't understand why some people just make up stories. It's alright to speculate, but your comment comes out as a fact as if Apple made such a statement which they never did.

11. taco50

Posts: 5506; Member since: Oct 08, 2009

darth8ball are you an executive for Samsung or Apple? How are you getting this insider information?

5. Joshing4fun

Posts: 1249; Member since: Aug 13, 2010

Samsung is just reeling Apple back in...

6. Immolate

Posts: 310; Member since: Jun 17, 2011

My wish is that all of the dust settles soon and all of these excellent companies start putting all of their energy into innovating and competing for our hard-earned dollars.

8. 530gemini

Posts: 2198; Member since: Sep 09, 2010

Business is business. If Samsung makes a good profit by providing display panels to Apple products, then there's no reason why they shouldn't. On the other hand, if Samsung refuses to supply Apple display panels as their strategy to cause ipad2 shortages and give their galaxy tab better availability, that's their call as well. Although the latter would give Samsung a bad reputation with other business partners, and maybe that's why they felt obliged to supply Apple display panels for the ipad2, even when they can afford to say no.

9. remixfa

Posts: 14605; Member since: Dec 19, 2008

their mobile tech business is the most profitable arm of samsung right now. They have been supplying apple for years with chipsets, so its just an extension of that. Apple needs Samsung more than samsung needs apple. Besides, samsung is taking money from apple to give to their lawyers to countersue apple. Using apple's own money against it.

12. taco50

Posts: 5506; Member since: Oct 08, 2009

Yea Apple is getting crushed by Samsung. Samsung is in complete control. Apple will shut down tomorrow if Samsung decides so.

14. remixfa

Posts: 14605; Member since: Dec 19, 2008

taco, if samsung stopped giving apple its chipsets, iphone4 sales would stop immediately. U think they can find another supplier over night that can handle it.. oh yea, then theres that whole "its samsungs hummingbird chip in the i4" thing.

13. iwebdroidberry7

Posts: 230; Member since: Jan 17, 2011

Wrongggggg!!!! Do you understand how many iPhones & iPads are sold? If Apple dropped Samsung, it wouldn't be hard at all to find someone else that can compete with the A4 & A5 chips. But do you know how hard if will be for Samsung to find someone that can sell as many devices as Apple? Hard as hell cosidering Apple is the #1 smartphone manufacturer. Samsung needs Apple wayyyy more. And if Samsung is using Apples money against them, isn't that a win for Apple, because they get the chipsets, and Samsung just has to use that money they made for pay legal fees?

15. downphoenix

Posts: 3165; Member since: Jun 19, 2010

No Samsung doesnt NEED Apple, they make more profit selling their own stuff than selling stuff to Apple. And they could hurt Apple if they just suddenly stop working with them, but I dont see Samsung doing that, they may let their contract run out on them possibly and by that time Apple will already have someone to take their place to minimize any impact in production.

18. gallitoking

Posts: 4721; Member since: May 17, 2011

ok I guess Samsung can find another company that willl 8 billion for parts or make it in profit selling their own products.... but Samsung did wrong in using inside information on Apple products to create "similar" products.. and sell them as their own....

16. dandirk

Posts: 187; Member since: Aug 04, 2011

How long do you think it takes to build a factory and set it up to make chips. Its not over-night let me tell you. Sure Apple with the amount of chips it needs would find a replacement, the question is how soon.

22. remixfa

Posts: 14605; Member since: Dec 19, 2008

iwebdroid.. are you serious? a few things.. samsung supplies every iDevice with their internal chips. very few companies can manage the scale that samsung has on chip production any new supply deals would have to be inked, factories adjusted, adn the like oh yea.. and samsung owns those chips. apple would have to find not only a new supplier but a new design and would have to make iOS stable with it. None of that would happen over night much less in a few months. Shipments of all iDevices would stop nearly immediately.

24. iwebdroidberry7

Posts: 230; Member since: Jan 17, 2011

Your a fool if you don't think Apple has a plan B

17. dandirk

Posts: 187; Member since: Aug 04, 2011

This shows that samsung is professional. They compete with Apple but will still sell its products to them. At least what we have seen so far, Apple is doing the opposite. It doesn't seem Apple is looking for license agreements, they are looking to out right banning competitors from the market. Which is their choice. If these patents suits fail, it could be seen as apple trying to delay competition becasue market share is hard to take from others. Look at the ipod, even with more then enough quality competitors it still dominates... same with windows on the desktop.

19. gallitoking

Posts: 4721; Member since: May 17, 2011

professional??? u say.. when they use a client ideas and make them their own???.. really??.... they wouldnt have been in this mess if they were professional...

21. jinwons

Posts: 95; Member since: Nov 24, 2010

It's apple who started this lawsuit mess. Really how many ways can android device be designed without upsetting them? They seem to think they own anything that has rectangular thin touch screen with icons on square grid. Apple didn't invent tablet, touch screen device form factor if anything. If they are confident in their products, why do they resort to lawsuit to ban others and don't try to compete in market?

23. gallitoking

Posts: 4721; Member since: May 17, 2011

u would be upset too if your supplier sudennly makes similar products than you.... you are right Apple did not invent anything.,.. but since the original ipad .. sudfenly other companies started the tablet business.. without the ipad.. the tablet world would not been where it is today... the rode the sucess that apple. before the iphone only the lg prada was avaliable.. a year later more than half were phones had touchscreens.. if it wasnt for the iphone the blackberries will stiil rule the world...and we still had candy bars as phones.. Apple changed that..so thanks to them . you EVO. your SGII your Bionic exists... just like Nokia changed the world with their cellphones now is Apple and if you respect nokia back then.. then respect Apple.. so the argument that apple didnt invent anything.. your right just as BMW didnt invent anyhting.. but made a simple car and transformed into a luxury quality car..

27. p0rkguy

Posts: 685; Member since: Nov 23, 2010

Why isn't the creator of cellular phones reimbursed with trillions then? I mean he's the reason Apple even has a reason to make a "phone". Sorry but your logic is flawed. Also, BMW originally started in planes not cars.

25. PeterIfromsweden

Posts: 1230; Member since: Aug 03, 2011

Have you suddenly become a iSheep ? I thought you where a fan of android ??

26. gallitoking

Posts: 4721; Member since: May 17, 2011

I am a motorola fan... and substitute for Apple when the regulars are not here.... I know is confusing but thats how I roll...lol... sorry had a heavy breakfast and filling good today...

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