Though the two have been partners for a number of years, with Apple understood to be Samsung largest customer in the first half of this year, the Korean company is looking to end its contract with the Californian Apple.
The reason is suspected to be down to Apple’s new pricing strategy which would see Samsung bearing reduced margins. Though Samsung supplied the LCD displays for both the original iPad and the subsequent iPad 2, stock market analysts predict that the price per pixel has more than halved in the interim.
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Samsung also have had to live with not being tasked with supplying displays for the new iPad Mini, potentially losing out to rivals Sharp and Sony who have both moved to align themselves with Apple during its ongoing dispute with Samsung.
Speaking to The Korea Times, a senior Samsung source who asked to remain anonymous, commented:
“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.”
“Samsung shipped less than three million to Apple during the third quarter of this year and we expect the quarterly shipment in the fourth quarter to fall to some 1.5 million.”
“Although we are losing Apple business, Apple looks safe as we found the right alternatives – Amazon and Samsung Electronics’ handset division.”
Though none of this has been officially confirmed by either Samsung or Apple, the increasingly heated nature of the pairs multiple court cases around the world has clearly taken its toll on the relationship. Hopefully the effects which are bound to manifest themselves eventually aren’t to the major detriment of either.