Ending of contract to supply LCD screens to Apple
In a true sign that business between Samsung and Apple is in big trouble, news is coming out about Samsung breaking an existing contract to provide LCD panels to Apple. Apple and Samsung have been battling it out this year and the most visible case was the recently decided one in Northern California. In that one, Samsung was judged to have infringed on Apple patents. Samsung is working on the appeal process to get this one over turned. In the mean time, the business relationships between these two has been strained and the future for Samsung providing parts to Apple is uncertain.
This morning, news is coming out where Samsung is terminating an Apple contract to provide them with LCD panels. This is from an unnamed source and is at best a rumor. This comes after rumors that Apple would be finding other suppliers for its A6 chip in the future. All of this could be seen as problematic for Samsung and have an impact on the revenue for the company. But that will not be the case. Samsung has been growing its own business and is continuing to expend its product line which requires electronic parts to meet that need.
On top of that, Amazon has been using Samsung to provide them with LCD panels in their very popular Kindle Fire tablets. The profit margins for supplying the Kindle Fire components are higher than what they are for the iPad. Apple has continually demanding cost cuts from Samsung in order to keep the overall iPad costs down as much as possible. By no longer having those pressures, Samsung should be able to easily fill in with providing LCD panels and chips to other companies producing panels.
All of these changes to move away from Apple are not going to happen over night. It will be some time next year when they business relationship between the two companies is finally ended.