Samsung Display officially severs contract with Apple for LCDs

Just like any bad relationship, Apple and Samsung have moved from a great partnership over the years to nothing but arguments and stabs in the back -- but Samsung is finally saying goodbye. 
Samsung Display, which has provided Apple with liquid crystal display (LCD) panels for its iPhones and iPads over the years, officially severed its contract with the iDevice maker today. Samsung cited cost as the main issue, since Apple has started using Samsung competitors with better prices for displays recently. Hence, Apple was expecting bigger discounts from Samsung.
"We are unable to supply our flat-screens to Apple with huge price discounts," said an anonymous source at Samsung. "Samsung has already cut our portion of shipments to Apple and next year we will stop shipping displays." 
While Samsung was the top supplier to Apple after the first 6 months of this year with 15 million LCDs shipped, this number dropped dramatically to less than 3 million LCDs shipped in the third quarter. In Q4 2012, this number is expected to drop even further to 1.5 million. 
Samsung did not ship any LCDs to Apple for its new iPad Mini, which is expected to be announced tomorrow. 
While the break-up marks the end of Samsung and Apple's turbulent relationship, it looks like Samsung has already moved on -- to Amazon. 
"Although we are losing Apple business, Samsung looks safe as we found the right alternatives -- Amazon and Samsung Electronics' handset division," said the Samsung source.

Amazon just recently announced its new Kindle Fire HD line-up for the holiday season, including a refreshed 7-inch Fire for $199, an 8.9-inch model for $299 and a 4G LTE version for $499. It's also offering a generous data package for only $50 per year.  
Apple and Samsung's break-up has been a long time coming. In addition to cost issues, as mentioned above, Samsung and Apple's relationship has been tense ever since the string of patent infringement lawsuits were launched against one another. Apple flung the first suit back in April 2011, calling Samsung an iPad/iPhone copycat. From there, the two launched several patent lawsuits around the world, and even successfully banned a few products (i.e., the Samsung Galaxy Tab 10.1). 
Apple had a major victory this year when a U.S. jury decided that Samsung indeed was infringing on Apple's mobile patents. Samsung was ordered to pay $1.05 billion in damages (which Apple tried to hike up to $3 billion) and in December, it will be decided whether certain Samsung devices will be banned. 

Source: The Korea Times

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