A report today says that the souring relationship between Apple and Samsung is leading to the two companies reducing their component supply deals, with Samsung reportedly ending supplies of LCD panels to Apple next year.
The Cupertino, California-based firm has been lowering its reliance on Samsung-manufactured displays for use in its popular i-branded devices as it is leveraging its influence to source components from Samsung’s rivals attracted by better pricing.
“We are unable to supply our flat-screens to Apple with huge price discounts. Samsung has already cut our portion of shipments to Apple and next year we will stop shipping displays,” said a senior Samsung source, asking not to be named, told The Korea Times on Monday.
Reportedly, Samsung shipped approximately 15 million LCD panels to Apple in the first half of 2012, falling to 3 million in Q3, and is expected to drop to 1.5 million in Q4 as Apple continues its shift to other suppliers.
Samsung is reported not to be involved in LCD production for the “iPad mini”, the device expected to be introduced at Apple media event on Tuesday. LG Display and AU Optronics are said to be handling production for that component.
It was reported earlier this month that Apple has cut back on memory orders from Samsung, and is also now designing its own A-series chips, using Samsung only as a fabricator of the chips.