A rumor has suggested Samsung is preparing to stop supplying Apple with touchscreens, however this has since been called “100 percent false” by a Samsung spokesperson.
It’s the latest in an escalating component supply war between the two companies.
Yesterday, the Korea Times reported that Samsung was to cease suppling screens to Apple next year, due to falling profits and presumably, the continuing animosity between the two companies.
Today, Samsung has spoken to CNET to refute the rumor, calling it “100 percent false.Sources at Samsung were quoted in the original article as saying “we are unable to supply our flat screens to Apple with huge price discounts.
Samsung has already cut our portion of shipments to Apple and next year we will stop shipping displays.
Another source said Samsung sent 3 million displays to Apple over the summer, but that number would halve between October and the end of the year.
Apple is known for driving a hard bargain with its component suppliers, and Samsung is said to feel that the company is “no longer a cash generator” due to the deeply discounted prices and increased competition.
In response to the claims made by the Korea Times, a Samsung spokesperson made a statement to CNET, calling the post “100 percent false,” and that it was asking the publication to alter the story.
Samsung has supplied a wide range of components to Apple for several years, including the processor, RAM, memory and of course, the screen.
However, in the iPhone 5, the flash memory, RAM and the battery are all produced by other companies, indicating Apple also wants to distance itself from its longtime partner.
Even if profits are as tight as Samsung makes out, it’s still going to miss Apple should it eventually decide to stop making components for them.
Their clients – major phone companies, such as Apple and Samsung – faced with fierce competition are making major changes.
Its hands may be full with its own range of smartphones and tablets, along with a burgeoning relationship with Amazon, but any contract loss always hurts.
Samsung’s denial comes soon after it was revealed Apple intended to cut back on its services for processors too.
Moniqua Hope is a business journalist based in Hokkaido, Japan. Moniqua has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Moniqua spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.
