Apple Ditches Samsung as iPhone 5 Memory, Display Supplier

News
By Wolfgang Gruener
published

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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Wolfgang Gruener
61 Comments Comment from the forums
  • kcorp2003
    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.
    Reply
  • aznshinobi
    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.
    Reply
  • Meatymutawings
    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.
    Reply
  • oj88
    "... 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.
    Reply
  • 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.
    Reply
  • mavroxur
    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.
    Reply
  • sonofliberty08
    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...
    Reply
  • reprotected
    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.
    Reply
  • jalek
    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.
    Reply
  • del35
    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....
    Reply