Samsung to quit LCD panel production for Apple - report

Ben Parfitt
Samsung to quit LCD panel production for Apple - report

The on-going legal rivalry between Samsung and Apple appears to have reached boiling point.

The pair have been engaged in a string of legal patent battles across the globe, with each claiming a number of victories and defeats. Most recently Apple was ordered to publish an official apology to Samsung after failing with its latest lawsuit in the UK.

But now the animosity looks to have impacted wider working arrangements between the duo.

Samsung is one of the world’s largest LCD panel makers and has supplied screens for many Apple products over the years. Apple was understood to be Samsung’s biggest customer in the first half of 2012.

However, TechCrunch reports that Samsung has told The Korea Times “that it will end its LCD panel supply relationship with Apple as of next year”.

The reason given for the decision, supposedly, is the reduced margins available under Apple’s pricing strategy. In fact, Samsung is already understood to have been omitted from the iPad Mini production process.

The report also claims that Samsung feels it can make up the shortfall through increased order numbers from other partners such as Amazon

However, it’s impossible to consider the news in anything other than a wider context. Could we be approaching a swift end to the pair’s relationship or could manufacturing pressures push both to sit down and iron out their other disputes?

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Tags: Apple , panel , lcd , samsung , production

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