Tuesday, October 23, 2012

Apple Inc. (NASDAQ:AAPL) & Samsung will End LCD Panel Relationship

Previously, Samsung used to supply LCD panels to Apple Inc.(NASDAQ:AAPL), but due to the tech giants’ rivalry growing stronger with each passing day, Samsung will soon put an end to the LCD panel supply relationship. Samsung was also eliminated from the iPad mini production. An executive from Samsung stated that there profits were inadequate due to Apple’s faulty supply pricing.

NPD DisplaySearch reported that Apple was one of Samsung’s high profile customers till it began routing orders to LG and Sharp, as the Apple-Samsung rivalry dragged both companies to the court regarding patent violation lawsuits. Apple has already made changes in designing its processor and also the way it sources RAM and NAND flash chips, to reduce dependency on its rival. However, another Apple competitor Amazon is currently placing bulk orders with Samsung and its consumer electronics division is also doing extremely well.

The volume of LCD panels required by Apple is huge and will increase after the iPad mini is launched. There were concerns about production delays if other suppliers failed to provide sufficient LCD panels to cope up with demand. But Sharp has managed to balance the demand and Sony has also been roped in as a supplier. Since Apple and Samsung have been at war for a while, both are not likely to be too affected, as they must have anticipated something like this.

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