Samsung will stop selling displays to Apple next year

Samsung Display will stop selling to Apple

Samsung Display has announced that they will be ending their display contract with Apple and will no longer supply LCD panels starting next year. Lower margins on Apple devices are said to be a primary reason for the split. Apple has long used Samsung displays for their iOS devices, and in the first part of this year, Samsung Display shipped 15 million LCDs to Apple, their single largest supplier of displays. However, they shipped less than 3 million displays to Apple in the last quarter, and are reportedly not providing any panels for the iPad mini. Additionally, Samsung Display may be making room for other, higher-margin partners, as the Korea Times reports:

According to multiple sources contacted by The Korea Times, Samsung Electronics’ handset division and Amazon are increasing their orders for displays used in tablets, which is a sufficient substitute for possible losses from cutting the relationship with the iPad maker.

This comes as Apple has moved to decrease their reliance on Samsung as a parts supplier. TSMC supposedly has the contract for the manufacture of quad-core A-series processors starting late next year. LG Display and Japan’s Sharp, already Apple’s partners, will undoubtedly see their display orders from Apple increase. Both companies, along with Japan Display, currently provide the in-cell touch panels for the iPhone 5, and are undoubtedly making panels for the iPad mini. Given the severe decrease in orders for the last part of the year, it seems that Apple has already been moving away from Samsung displays for some time, and Apple's other partners should have little trouble stepping in. As relations between Apple and Samsung deteriorate, other companies move in to fill the gaps, and given the profit they stand to make on Apple's contracts, they are perfectly happy to do so.

Source: The Korea Times

Joseph Keller

Joseph Keller is a news reporter for iMore. He's also chilling out and having a sandwich.

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Reader comments

Samsung will stop selling displays to Apple next year

8 Comments

This seems long overdue and should have happened the moment Samsung became competition in the handset and tablet areas.

How do we know that this is not a "sour grapes"article planted by Samsung? If Samsung really wanted to hurt Apple they would have restricted or cancelled delivery long ago... I'm kinda thinking, but without proof, that Apple terminated the contract, or even if Samsung terminated the contract, it had to give Apple a 1 to 2 year notice...

Good luck to anybody who thinks there is good profit to be made selling hardware to Apple.

This would have been a bigger deal a couple years ago. Looking at market share numbers, I'm pretty sure Samsung will be just fine even if they just build their own products.

Samsung lost a multibillion dollar contract between apple chips and displays. So I'm sure they lost a good amount of profit. And don't forget a lot of android manufactures like Sony and lg make there own screens and don't use Samsung either, this was probably there biggest contract.

The word terminated is sometimes used differently in business. Terminated sometimes just means a contract has ended and will not be renewed. In any case it doesn't really matter as Samsung has the most to lose here. Apple spends the most on parts due to the high volume of orders they make. Companies like Samsung would love to have those orders to fill as it will take many companies to add up to just one of Apples deals. Apple is also consistent with large orders compared to other companies. Not to mention the more of a product you make the more proficient you get and the more efficient you get. So in the long run a company can spend less as they learn how to better make a part.