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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Anyways maybe apple wants their iPhone 5 to have LG in-cell touch displays that could be why their partnering up.
Maybe not. According to the rumor from SEMICON Taiwan, TSMC will manufacture Apple's next generation ARM Cortex A15 with 20nm process next year.
The marketers and attorneys at Apple only know they have more money than anyone, but have no clue what to do with it.
I crappies are dumb enough that they will pay alot more for the same sub-par product. So Apple will lose nothing....