A report in the Korea Times suggests Samsung will sever its contract with Apple and will no longer supply LCD panels to the Cupertino company, starting in 2013. An unnamed senior industry source told the newspaper that the company is not making enough money off the panels that it is selling to Apple.
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.
Samsung is reportedly shipping fewer and fewer panels to Apple each quarter, with the Korean company expected to supply Apple with only 4.5 million LCD panels in the second half of the year. This is down from the 15 million panels that Samsung sent to Apple in the first six months of 2012. Samsung will reportedly turn to Amazon and its own handset division to make up for the loss of orders from Apple.
Apple sources components from many companies, including displays from LG and Sharp as well as Samsung.