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Samsung (SSNLF.PK) says it has terminated its LCD supply contract with Apple (AAPL), and will no...

Samsung (SSNLF.PK) says it has terminated its LCD supply contract with Apple (AAPL), and will no longer provide panels to the company due to price disagreements. Rivals LG Display (LPL +2.2%), AU Optronics (AU -1%), and Sharp (SHCAY.PK), who are already supplying Apple, should benefit. Apple has already shifted memory purchases away from Samsung, and reportedly wants to migrate its app processor manufacturing to TSMC. Update: A Samsung spokesman now denies the Korea Times' report.
Comments (46)
  • I see more supply chain disruption in the future!!
    22 Oct 2012, 01:48 PM Reply Like
  • Yup.... not to mention the issue with flickering screens


    22 Oct 2012, 01:56 PM Reply Like
  • Exactly. Unlike Samsung, Apple cannot make their stuff fast enough. I also notice that I see NO advertising for APPL and Samsung is all over the place. Yet APPL can't keep their stuff in stock. Quality is the key and APPL is the gold standard.
    22 Oct 2012, 02:51 PM Reply Like
  • Music to my ears! The faster they can drop those crooks as suppliers the better. Seriously doubt there will be a disruption.
    22 Oct 2012, 01:54 PM Reply Like
  • Has Samsung ever been the problem for Apple in terms of supplying parts? I can't recall (honest question).


    I wonder if they ever "disrupted" supply on purpose lol corporate espionage let the conspiracy theories begin!
    22 Oct 2012, 02:05 PM Reply Like
  • Yup. Dump google and then dump samsung and let me know how the Apple ecosystem is doing in a couple years.....
    22 Oct 2012, 02:12 PM Reply Like
  • apple maps is so weird (my gf's iPhone 4 switched over) it's differences are subtle but enough to make it feel weird for me... (been using google maps/earth since it first was released to public).
    22 Oct 2012, 02:14 PM Reply Like
  • Do chopchop and wigit5 have a life or are they paid shills for Samsung?
    22 Oct 2012, 02:31 PM Reply Like
  • hey chopchop comes up with some good stuff every now and then. :)
    22 Oct 2012, 02:33 PM Reply Like
  • I'm as much a paid shill for Samsung as you are for Apple.


    It must suck when you have no counter-arguments to bring to a thread like this :(


    You could just say "GO AAPL" every time. It takes less time than attacking me
    22 Oct 2012, 02:44 PM Reply Like
  • I actually have zero interests in either company... I don't even think I own a single piece of Samsung product outright (maybe some chip in my phone or screen idk but nothing that says Samsung on the surface).


    I'm glad you were able to at least bring something to the table rocback... even if it was nothing.
    22 Oct 2012, 02:53 PM Reply Like
  • good retort wigit5!
    22 Oct 2012, 02:58 PM Reply Like
  • Umm, I'll take a stab at it. AAPL does not need Samsung or GOOG for their ecosystem. Nothing that Samsung provides to AAPL is proprietary technology. AAPL certainly doesn't need GOOG, LOL!!! For what? Maps? Puh-leeeeeeese. Mapquest is better for navigation than Google Maps and is FREE. Before long AAPL's maps will be right there with Google maps. In the interim, I'm happy with the AAPL product and Mapquest. The AAPL ecosystem will be better in two years than it is today for the very reason that Samsung and Google will be stonewalled out of it.
    22 Oct 2012, 05:59 PM Reply Like
  • Blackberry was on top of the world too when the iPhone was introduced.....


    regardless of your rose coloured glasses, Samsung is/was a top supplier for them and no one does search or maps like google. The traffic integration and integration with things like reviews is great.


    revisit this thread in two years and let's see if you're right...
    22 Oct 2012, 09:10 PM Reply Like
  • The odds of anyone revisiting this thread in 2 years is approaching zero.
    23 Oct 2012, 09:17 AM Reply Like
  • I think Samsung will outperform Apple in a couple of years...I am taking two GIIIĀ“s down to Colombia this one wanted an APPLE
    22 Oct 2012, 02:11 PM Reply Like
  • I'm pretty sure that Apple won't be making washers and dryers or refrigerators like Samsung.

    23 Oct 2012, 09:21 AM Reply Like
  • It will make all the more easier for Samsung to get into smart appliances before AAPL ;)
    23 Oct 2012, 09:25 AM Reply Like
  • Glad that these two are going their own direction. Waiting for the day when Samsung has to do its own designing again. Riding Apples coat tails got them to where they are.
    22 Oct 2012, 02:13 PM Reply Like
  • Agreed!!!! The shot across the bow and heard around the world. You cheat and steal........and you will get your pants handed to you. Apple will further distance itself from Samsung and let the copycats fend for themselves while allowing Apple to open up better innovation and talent with new suppliers. Tim Cook probably knows supply chain issues better than Steve did.
    22 Oct 2012, 02:13 PM Reply Like
  • Tim was so good in that area - in fact that was the original reasoning bringing Tim on board to AAPL in the first place and hence the reason Tim is where he is today. Long AAPL.
    22 Oct 2012, 02:16 PM Reply Like
  • It's going to be tough. Sharp isn't at the same level as Samsung when it comes to supplying Apple


    Earlier this year, LG and Sharp couldn't meet AAPL's standards for the IPad retina display.... guess who could?



    Sharp has been having issues with the new Iphone which has been well-publicized:



    Earlier this year, many expected Samsung to continue to be the sole supplier of AAPL's chips:

    22 Oct 2012, 02:21 PM Reply Like
  • dear SA readers, a word to the wise....jingoism and investing don't mix...
    22 Oct 2012, 02:23 PM Reply Like
  • "..... due to price disagreements. "


    Now, that is a laugh, as "we are sick and tired of making parts for our killer competitor" is surely closer to the real truth of it.
    22 Oct 2012, 02:30 PM Reply Like
  • I doubt the head of the Samsung foundry is happy about this. His bonus is determined based on his revenue compared to the other business segments at Samsung.


    Samsung has lost over $1B in annual revenue from Apple because they insisted on copying Apple. I hope they think it was worth it. Their expert witness said they could have designed around all the infringements for a mere $27K. So instead they lose $1B/year. Someone have a calculator handy to see if Samsung made out with that strategy.
    22 Oct 2012, 02:41 PM Reply Like
  • I am sure Samsung is happy to dump a customer like Apple. It's probably no different than a supplier that has to deal with wal-mart. And Samsung knows that Sharp or LG will not be able to deliver the same quality.



    "The publication, citing an unnamed senior Samsung source, said Samsung is taking the step because it "believes its American partner is no longer a cash-generator due to the iPhone maker's stiffer supply-chain management structure." Basically, Samsung isn't making as much from Apple's display purchases as it did in the past."
    22 Oct 2012, 02:50 PM Reply Like
  • It's about time Apple takes its business elsewhere. Why pay your competitor who back-stab you with the infringed products, attack ads, and legal actions.
    PS: It is really Apple who dumped Samsung, despite the 'official' report stating otherwise.
    22 Oct 2012, 03:48 PM Reply Like
  • Sounds like a win win pirota
    22 Oct 2012, 03:53 PM Reply Like
  • With all the lawsuits it's understandable...BUT only hurts Samsung! ~jeb
    22 Oct 2012, 02:41 PM Reply Like
  • Just wait until Samsung is no longer Apple's foundry. LG, Optronics, Sharp, TSMC, have all been vetted and can brought up to speed, especially since these companies are eager and willing to work WITH Apple, instead of against them. This is a strategic win/win for Apple. Greater vendor flexibility, while denying the competition business opportunities. The supply chain will follow.
    22 Oct 2012, 02:53 PM Reply Like
  • It's not going to happen overnight. Regardless of what AAPL perma-bulls say, Samsung was an important part of AAPL's supply chain. Much like how AAPL let google become important to its maps and search, Samsung became an important supplier.


    22 Oct 2012, 03:04 PM Reply Like
  • Google makes 400% more ad revenue from iOS than they do on Android. Isn't Google's business "ad revenue"?
    22 Oct 2012, 03:55 PM Reply Like
  • Ah yes.... more inaccuracies from gensearch2. You really should learn to vet your claims before you post them




    Seriously.... it's not a hard leap to make to understand that Android is better for Google in the long run than iOS.
    22 Oct 2012, 04:29 PM Reply Like
  • Be aware that Apple is not happy with Google and yearns to be free of them. If and when that happens, Google will lose tremendous market share. One way Apple can do it (besides partnership with MSFT on Bing) is to buy Yahoo and use it as their search engine on all Apple products. Possible scenario.
    22 Oct 2012, 04:54 PM Reply Like
  • Ah, the old anonymous source close to Google. Is that an example of vetting?
    23 Oct 2012, 09:26 AM Reply Like
  • It is when it ends up in a somewhat mainstream source like Business Insider.
    23 Oct 2012, 09:31 AM Reply Like
  • It's about time. Me wonders if Apple did the terminating.
    22 Oct 2012, 03:25 PM Reply Like
  • Apple seems to be the choice of critics. No one asks if Samsung's assembly lines in China are free of children, or lists the build price or profit from the GalaxyIII. The fact that Androids come in many revs and is confusing isn't mentioned. Every misstep Apple does is blown out of proportion disrupting the stock price until the next earnings report, which is coming this week. Apple will report earnings that will add another $7 billion or so and the stock will recover.
    Meanwhile Samsung is a very competitive company in many fields. With sales of 165 Trillion Won ( $150 billion USD) they are leaders in TVs, Smartphones, and manufacturing displays, chips, foundries, etc. they certainly will challenge Apple.
    The reality is that they will both grow as the smartphone market grows. Long on Apple.
    22 Oct 2012, 03:26 PM Reply Like
  • It's kinda the same reason that people like to pick on WMT when TGT is doing the exact same labor and sourcing practices. When you are the biggest on the block, the target on your back gets bigger too.
    22 Oct 2012, 03:47 PM Reply Like
  • Even though I'm biased toward Apple and have bunch of calls on AAPL, I do think that Samsung makes some of the best 'appliances'. I just love my Samsung big screen TV which is a smart-TV with web access and web apps.... Samsung is already a step ahead of Apple's "iTV vaporware". Plus, because they are so diversified with so many unrelated products, their earning is stable yet the company is nimble enough to grow.


    Too bad it is impossible to buy Samsung shares here in USA unless you open an international account.
    22 Oct 2012, 03:55 PM Reply Like
  • Samsung copied the Smart TV from Apple and rushed it out. Apple will bring out something superior when they are good and ready. There is not much profit margin in the TV's themselves, they wasnt the whole eco-system. Which is why Apple TV is based on content delivery deals, huge ones with Hollywood, and those are being negotiated as we speak. It is a huge complicated deal to close and the Hollywood studios are demanding a lot, but once Apple has sweetened the pot enough, one will sign on, then they all will so as not to be left behind. Then it will be Apples and Oranges again, Apple providing the entire eco-system,. Samsung being merely a high quality hardware maker and copy-cat.


    Yes, Samsung makes great looking stuff. But the smart phones are obvious copies of Apple's look, and no bargain. And the court win by Apple now forces Samsung to back off and slow down, or else. That goes for other copycars too. LG is really hurting because of a loss to Apple in court.


    I was in a T-Mobile store the other day where they specialize in Samsungs and have no Apple products. I was the only customer there (and only one employee there too) and I was there to complain my Android wasn't working. Then I went to the Apple store and found it packed with excited customers and sales people. At leat 150 people in all and people were buying, buying and buying. with no discount prices.


    So do the math.
    22 Oct 2012, 04:51 PM Reply Like
  • I own the most advanced Samsung LED television made. The interface on the remote to access the web is ridiculously antiquated. I have to peck away on each number key until I get to the correct corresponding letter on the number key. This reminds me of texting on a first generation smart phone. AAPL will blow Samsung out of the water with a real universal remote that will be intuitive, have a touch screen and will work with ALL devices in the AAPL ecosystem as well as itunes. Samsung will be left in the dust....maybe as early as tomorrow. Think killer app.
    22 Oct 2012, 06:03 PM Reply Like
  • "Samsung copied the Smart TV from Apple and rushed it out. Apple will bring out something superior when they are good and ready. "


    You mean like Apple rushed out the iPhone 4, 4S, Apple Maps??? And you'll have to show some documentation that Samsung copied Apple because I haven't seen Apple sue Samsung for that patent yet.
    23 Oct 2012, 09:30 AM Reply Like
  • Samsung is the only loser in this case. By copying the iPhone they set themselves up to be sued successfully and to lose Apple as a chips client. They have also damaged their brand, disrupted their own model roll-outs and created at last 1.1 billion in liability to Apple, but probably a lot more.


    It doesn't matter which plant Apple uses, they supply the same super high quality controls wherever they are. They simply rent out who can do the job best. That is why tempers flared at their China plant a few weeks ago. The quality control people are not used to being perfectionists and they were forced to. Now that is fixed, just as any disruption from Samsung has also been fixed, I'm sure. Apple prepares itself for such changes, and will do do always, especially after the one error they made with the maps ap. That will not happen again.
    22 Oct 2012, 04:44 PM Reply Like
  • Yeah the GS3 really is a testament to their "damaged" brand.


    Lol let me know when apple releases a product with half the new features of a GS3
    22 Oct 2012, 09:14 PM Reply Like
  • Well, the Samsung/Apple debate will continue, and the winners will be consumers. Imagine if Apple thought it could put it into coast once they came out with their breakthrough products. Where would innovation be today? As it is, everyone in this space is running full tilt. The consumer wins, the investors, not so much. As investors, we watch every development and bet accordingly. As consumers, there is a better world coming...soon.
    22 Oct 2012, 10:53 PM Reply Like
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