Samsung Refutes Report of Terminated LCD Contract with Apple

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Last Tuesday, a Samsung representative refuted previous reports by The Korea Times that the company would no longer be producing LCD screen for Apple devices starting next year. The representative said the report was 100 percent false, and they are requesting the publication  revise its story.

The Korea Times cited an unnamed Samsung official, saying that the South Korean tech giant has already cut its portion of shipments to Apple. It will be cut entirely on 2013. There were also reports that the company plans to offset the loss of Apple by selling more displays to its own handset division or to Amazon’s Kindle Fire HD.

Weaning Off Samsung-source Components for iDevices

The news came at the heels of The Korea Time’s report, claiming that Apple has been weaning off Samsung-sourced components for their devices. Recently, it was reported that the Cupertino-based company ended its chip production deal with the South Korean tech giant.

According to an unnamed senior official from Samsung, the relationship between both companies is “not about to become one-dimensional.”

There are three types of chip clients. Some want us to handle everything from chip design, architecture, and manufacturing. Some want us to just design and manufacture. Some wants us to just make chips. Apple is now the third type.

Recently, Apple also decided to cut its NAND flash orders that are bound for the first batch of iPhone 5. Last month, there were claims that the Cupertino-based company has cut its orders for memory modules from Samsung, which is slated for the latest iOS smartphone. Taking the South Korean tech giant’s place are Toshiba, Elpida Memory, and SK Hynix.

During the first half of the year, Samsung supplied Apple with 15 million LCDs, and it was cut to 3 million during the third quarter. It is expected that the number will drop by 50 percent on the last quarter of 2012. Obviously, this news gained traction after it was discovered that Apple used their chip design and architecture for the iPhone 5.

New Set of Display Suppliers

Previously, Samsung was the only company that was able to produce high-resolution displays for Apple’s new iPad. However, LG and Sharp both joined the supply chain a couple of months later.

In relation to this, it was reported that the company will launch the iPad Mini at a special event today. There were also claims that LG and AU Optronics were the main providers of the device’s panels.

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