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Apple Ditches Samsung as iPhone 5 Memory, Display Supplier

By - Source: Bloomberg | B 61 comments

It's hard to believe it is just about pricing.

The common phrase to think of is that "it's nothing personal, but simply business." But when we hear that Samsung will not be providing memory chips and displays in the initial production volumes of the iPhone 5, we cannot ignore the fact that Apple and Samsung were involved in a bitter and rather damaging legal dispute. This one may be more personal than it is portrayed.

According to Bloomberg, industry sources "familiar with the matter" said that Samsung will still be manufacturing the processor, but the company will be dropped from the bill of materials otherwise as Apple is leveraging its influence to source components from other suppliers. Pricing seems to be the general reason, while other point to the legal battle between the two and we know that lawsuits have never been a good way to increase the loyalty in business relationships.

Bloomberg said that Apple is getting its displays from LG, Sharp and Japan Display. AU Optronics may join the supplier base for a smaller iPad.

 

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  • 23 Hide
    aznshinobi , September 7, 2012 11:57 PM
    Samsung should just stop supplying Apple in general, would like to see where they go when they can't take credit for other peoples work.
  • 23 Hide
    Meatymutawings , September 8, 2012 12:19 AM
    aznshinobiSamsung should just stop supplying Apple in general, would like to see where they go when they can't take credit for other peoples work.

    Samsung would never want to have that happen, if samsung stops supplying apple, apple will always have (maybe inferior) alternatives, but samsung will lose major revenue and profit.
  • 22 Hide
    mavroxur , September 8, 2012 1:51 AM
    Hell, it could be about price. If I were Samsung, i'd jack up my pricing to Apple to "recover a $1 Billion loss". Screw Apple and the horse they rode in on. Good riddance to them.
Other Comments
  • 9 Hide
    kcorp2003 , September 7, 2012 11:49 PM
    I heard samsung wants 1 billion dollars from LG for stealing their OLED tech. revenge?
    Anyways maybe apple wants their iPhone 5 to have LG in-cell touch displays that could be why their partnering up.
  • 23 Hide
    aznshinobi , September 7, 2012 11:57 PM
    Samsung should just stop supplying Apple in general, would like to see where they go when they can't take credit for other peoples work.
  • 23 Hide
    Meatymutawings , September 8, 2012 12:19 AM
    aznshinobiSamsung should just stop supplying Apple in general, would like to see where they go when they can't take credit for other peoples work.

    Samsung would never want to have that happen, if samsung stops supplying apple, apple will always have (maybe inferior) alternatives, but samsung will lose major revenue and profit.
  • 12 Hide
    oj88 , September 8, 2012 12:43 AM
    "... Samsung will still be manufacturing the processor, ..."
    Maybe not. According to the rumor from SEMICON Taiwan, TSMC will manufacture Apple's next generation ARM Cortex A15 with 20nm process next year.
  • 15 Hide
    Anonymous , September 8, 2012 1:09 AM
    It is only natural for Apple to avoid Samsung with the current bitter relationship now. There is always fear that Samsung will supply low quality parts as a revenge. The revenue obtained from supply Apple has never been that significant considering Samsung group own 20% of south Korea GDP. However, everywhere Apple looks, they will see the same rectangular phone shape and grid icons design from all the potential suppliers anyway. Maybe Apple should start investing into making their own electronic parts or they will eventually have to deal with the fact that their suppliers are their competitors. Or they should learn to compete in the market using the same traditional approach as all other companies.
  • 22 Hide
    mavroxur , September 8, 2012 1:51 AM
    Hell, it could be about price. If I were Samsung, i'd jack up my pricing to Apple to "recover a $1 Billion loss". Screw Apple and the horse they rode in on. Good riddance to them.
  • -1 Hide
    sonofliberty08 , September 8, 2012 1:52 AM
    whatever... apple's gave 5 cent only for whom produce their products, the workers work in the sweat shop until they die, and apple's just don't care (well they pretend they care), because they want it that way to reduce cost and earn as much as they can, if US ppls are jobless and poor, apple's are the one to blame, not other country which their workers give their life to produce apple's products, and pollute the environment...
  • -3 Hide
    reprotected , September 8, 2012 2:19 AM
    sonofliberty08whatever... apple's gave 5 cent only for whom produce their products, the workers work in the sweat shop until they die, and apple's just don't care (well they pretend they care), because they want it that way to reduce cost and earn as much as they can, if US ppls are jobless and poor, apple's are the one to blame, not other country which their workers give their life to produce apple's products, and pollute the environment...

    Foxconn isn't a sweatshop. Pay is way above average compared to the average pay in China. People actually complain that there isn't enough overtime to earn more money. Research your facts.
  • 2 Hide
    jalek , September 8, 2012 2:31 AM
    When you have nothing new to offer, sue to capitalize on old products.
    The marketers and attorneys at Apple only know they have more money than anyone, but have no clue what to do with it.
  • 3 Hide
    del35 , September 8, 2012 2:31 AM
    Quote:
    Hell, it could be about price. If I were Samsung, i'd jack up my pricing to Apple to "recover a $1 Billion loss". Screw Apple and the horse they rode in on. Good riddance to them.


    I crappies are dumb enough that they will pay alot more for the same sub-par product. So Apple will lose nothing....
  • 2 Hide
    del35 , September 8, 2012 2:54 AM
    Quote:
    When you have nothing new to offer, sue to capitalize on old products.


    Ummm, they have a new product. Their newly invented 4 inch iCrapjail 5 phone. "It is a magical invention indeed", the herd of Apple morons will think. Needless to say that, probably prisoners given larger cells would also think it "magical". Sadly the money Apple has swindled from the locust that buys Apple products is being used largely to litigate over silly patents like the "slide to open" and "rectangular shaped phone with round edges" patents, and little has gone for research. Besides, I dont think iZombies would benefit from more innovation, they are already technologically challenged with the crap that populates the iPhone. Think of it this way, a richer hardware potential in the iPhone 5 would be akin to giving a lifelong invalid that can barely walk ballerina shoes.... No use for such shoes!

    Yes indeed. Apple knows its clientele. They are ignorant and pretentiously silly. They match their clothes with the chassis of their devices and sit around in places like Starbucks waiting for people to look at them with their shinny overpriced unservicible Apple logoed devices.



  • 2 Hide
    ericburnby , September 8, 2012 3:15 AM
    Next we'll hear they settled their lawsuits and entered into a licensing agreement.

    Shortly afterwards, Apple places more orders for Samsung components.
  • 13 Hide
    JamesSneed , September 8, 2012 4:01 AM
    Quote:
    Samsung would never want to have that happen, if samsung stops supplying apple, apple will always have (maybe inferior) alternatives, but samsung will lose major revenue and profit.


    Yes but Apple doesn't actually manufacture much of anything, Samsung does. When you manufacture the entire phone in house you have a distinct advantage. Im sure Samsung wont end any Apple contracts early but Samsung is clearly pissed off. Samsung shipped 52 million smart phones in the second quarter of 2012 against Apples 26 Million. At this point I think it is safe to say Samsung can let Apple go somewhere else. I have a distinct feeling Samsung is going to seriously cut into Apples sales in 2013. Should be interesting.
  • -6 Hide
    baconeater , September 8, 2012 5:06 AM
    reprotectedFoxconn isn't a sweatshop. Pay is way above average compared to the average pay in China. People actually complain that there isn't enough overtime to earn more money. Research your facts.


    Not to mention that Samsung and Intel also produce products at Foxconn. PLEASE do your research. Many very large tech companies use Foxconn, but ONLY apple gets the blame.
  • -5 Hide
    baconeater , September 8, 2012 5:12 AM
    del35Ummm, they have a new product. Their newly invented 4 inch iCrapjail 5 phone. "It is a magical invention indeed", the herd of Apple morons will think. Needless to say that, probably prisoners given larger cells would also think it "magical". Sadly the money Apple has swindled from the locust that buys Apple products is being used largely to litigate over silly patents like the "slide to open" and "rectangular shaped phone with round edges" patents, and little has gone for research. Besides, I dont think iZombies would benefit from more innovation, they are already technologically challenged with the crap that populates the iPhone. Think of it this way, a richer hardware potential in the iPhone 5 would be akin to giving a lifelong invalid that can barely walk ballerina shoes.... No use for such shoes!Yes indeed. Apple knows its clientele. They are ignorant and pretentiously silly. They match their clothes with the chassis of their devices and sit around in places like Starbucks waiting for people to look at them with their shinny overpriced unservicible Apple logoed devices.


    I also heard that apple consumers have a much higher average income. I would rather be ignorant with a lot of money, and you can be completely right about all those points no one cares about. seriously I don't use apple because I don't like the ecosystem, but that dosen't mean their products are not very capable
  • 8 Hide
    sonofliberty08 , September 8, 2012 5:14 AM
    reprotectedFoxconn isn't a sweatshop. Pay is way above average compared to the average pay in China. People actually complain that there isn't enough overtime to earn more money. Research your facts.

    yeah foxconn isn't sweatshop, only foxconn apple production line are, u get 10% higher wage but then work 16 hours a day in poor condition environment until die
  • 5 Hide
    sonofliberty08 , September 8, 2012 5:32 AM
    Quote:
    I have no love for Apple but workers at Foxconn make a very decent wage for China. Might want to try doing some research before shooting your mouth off.

    10% higher wage but then work 200% higher per day in poor condition environment? that wage earned not enough to cover their medical and funeral fees, those chinese slave workers didn't make big money on that, don't even mention they stolen jobs from the american, all big money goes into apple's pocket, and leave the american jobless and crying poor...
  • 3 Hide
    Anonymous , September 8, 2012 6:44 AM
    tabletmanThere is always fear that Samsung will supply low quality parts as a revenge.


    FALSE
    because in a contract, there is ALWAYS a clause asking, ie : 98.5% quality or 1% failure rate etc. if samsung dont comply, samsung pay.
  • 3 Hide
    v3rlon , September 8, 2012 7:02 AM
    You do not make high end electronics in a sweatshop. Even implying this is ridiculous when you look at the real sweatshops. I remember reading that AMD processors were made in sweatshops while laughing on my way to work in FAB25. It would be difficult to buy many electronics without crossing paths with Foxconn. I think all three current gen gaming consoles use them. If workers are actively looking for overtime, they must not be too unhappy.
  • 0 Hide
    jcurry23 , September 8, 2012 7:07 AM
    del35Ummm, they have a new product. Their newly invented 4 inch iCrapjail 5 phone. "It is a magical invention indeed", the herd of Apple morons will think. Needless to say that, probably prisoners given larger cells would also think it "magical". Sadly the money Apple has swindled from the locust that buys Apple products is being used largely to litigate over silly patents like the "slide to open" and "rectangular shaped phone with round edges" patents, and little has gone for research. Besides, I dont think iZombies would benefit from more innovation, they are already technologically challenged with the crap that populates the iPhone. Think of it this way, a richer hardware potential in the iPhone 5 would be akin to giving a lifelong invalid that can barely walk ballerina shoes.... No use for such shoes!Yes indeed. Apple knows its clientele. They are ignorant and pretentiously silly. They match their clothes with the chassis of their devices and sit around in places like Starbucks waiting for people to look at them with their shinny overpriced unservicible Apple logoed devices.



    Why were the employees jumping off the roofs of where they worked at?
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