Samsung to Stop Supplying Apple With LCDs
Following legal battle, the two companies part ways.
Web2Carz Contributing Writer
Published: October 22nd, 2012
Earlier this year, a court ruled for Samsung to pay Apple $1.05 billion for patent infringement.
his year has been rife with drama for Apple and Samsung. Both companies battled it out in court over patents, and with Apple winning a major lawsuit, it's unsurprising to learn that Samsung Display has terminated a contract to make LCD screens for Apple.
A news report published in The Korea Times states that the reason behind the contract-breaking is that Samsung isn't able to offer Apple the discount prices that Apple wants to pay. Samsung will stop supplying displays for Apple by next year.
Samsung supplied LCDs to Apple for its iPhones and iPads, but as the two companies are becoming more and more competitive, it makes sense that Samsung would pull its support from Apple. Of course, the legal implications are also there—earlier this year, a court ruled that Samsung would have to pay Apple $1.05 billion in damages in a patent infringement suit. Though Samsung has appealed that ruling, it's obvious that the business relationships are strained.
Samsung will, however, keep supplying other products to Apple. The company is rumored to be manufacturing Apple's first A6 chip.
Apple's other suppliers for the displays include Sharp and LG Electronics, so it's good that there are still contracts in place—the display has been part of the reason that iPhones and iPads have sold so well, and Apple is expected to announce a new iPad this week.