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Mystery Over Samsung's Role in Apple's Supply Chain

Samsung has poured cold water over yesterday's claims that one of its oldest ties with Apple was to come to an end. The firms have enjoyed a relationship on the supply chain front for many years, with the Korean firm providing LCD screens for the U.S. firm's devices.

The report claims that Samsung has tired of Apple's strict price constraints and believes that orders from Amazon as well as increased demand from its own Samsung Electronics would fill the Apple-sized hole. But the Korean firm refuted this firmly. "Samsung Display has never tried to cut the supply for LCD panels to Apple," it said sternly.

One Samsung-Apple supply chain which is no more, however, is that of mobile chips. And earlier this month one of Samsung's leading lights in its chip architecture moved to Cupertino. GIven the intense ongoing patent spat, a loosening of the myriad ties between the two firms wouldn't be illogical.

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  • shm224

    I don't t think this reporter has no idea what's going on. 

    * Apple's mobile chip A6 is the first chip designed by Apple - exclusively manufactured by Samsung. The previous Apple chips, based on the widely license ARM arch, were designed, implemented & manufactured by Samsung and custom-tweaked for Apple - who did not have much internal chip design expertise until 2008.

    * Samsung Display was never a significant part of the Apple supply chain.  Until the iPad 2's backlight leakage problem, most Apple's displays were made by LG. 

    * Then you have this quality-control & manufacturing problems at LG and other suppliers like Sharp. Samsung stepped in when LG had problem with defective iPad 2 displays last year. LG and Sharp again had manufacturing / yield issues with the new iPad's display recently - and almost all the early batch of the new iPads were made by Samsung. 

    * The KoreaTimes who leaked the news is not very reputable or reliable. Citing "unnamed Samsung executive," the newspaper also reported that Samsung was to release the next generation of their flagship smartphone Galaxy S4 in Feb of 2013 back in July- which was quickly refuted by Samsung (again).