Smartphones/Mobile Applications

Samsung Denies Reports it Will No Longer Supply Apple

Samsung is denying news reports it will no longer supply Apple with liquid crystal display (LCD) panels.

The Korea Times, which broke the story Oct. 22, cited a “senior industry official” and “industry sources” as saying Samsung would end its role as Apple’s biggest LCD supplier by the new year.

A spokesman from the Korean company, however, told CNET the Korea Times story “was 100 percent false.”

“Samsung Display has never tried to cut the supply for LCD panels to Apple,” the spokesman told CNET Oct. 23.

The Korea Times report indicated Samsung planned to gradually reduce its supply of LCDs to Apple throughout the remainder of 2012.

Apple, the story said, has been ordering fewer Samsung-manufactured displays for use in its iPhones and tablets because it is doing business with some of Samsung’s rivals, attracted by lower prices.

“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,” a senior Samsung source, told the Korea Times.

The story also quoted a source as saying Samsung had shipped 15 million displays to Apple in the first six months of 2012, but less than 3 million during the third quarter, which ended in September. The source also said the company expects “the quarterly shipment in the fourth quarter to fall to some 1.5 million.”

Despite Samsung’s denials, rumors continue to circulate about the relationship between the company and Apple.

The relationship between the two companies soured last year when the iPhone maker launched a lawsuit against Korean company, claiming it had infringed on Apple’s copyright by copying the look and feel of the iPhone and iPad. Samsung has since responded in kind.

The companies are now embroiled in a patent fracas in 10 countries as each accuses the other of copying one another’s mobile devices.

Competition has become particularly fierce as the holiday season approaches with both firms striving to dominate the mobile market.

U.S. District Judge Lucy Koh recently rescinded a ban on U.S. sales of the Samsung Galaxy Tab 10.1 that she imposed in June. Koh said she had no grounds for keeping the preliminary injunction in place after jurors decided in an Aug. 24 verdict Samsung did not violate an Apple design patent.

Apple, however, said the ban should not be lifted because the jury concluded the Samsung device violated other patents at issue in the case.

A jury awarded Apple $1.05 billion in a separate case in August after determining a number of Samsung Smartphones violated Apple’s iPhone patents.

Koh also has ordered Apple to release information on its iPhone sales, earnings and profit margins.

Apple recently lost its appeal in a U.K. court after the judicial panel upheld a July ruling, unanimously agreeing that Samsung’s tablets just “are not as cool” as the iPad and, therefore, Samsung did not infringe on Apple’s rights.

Judge Robin Jacob of the Court of Appeal also ordered Apple to broadcast the court rulings to ensure consumers know Samsung’s Galaxy tablet is not a knock-off.

Apple has not said if it will take its appeal to the Supreme Court, the final court of appeal for U.K. civil cases.

Samsung, meanwhile, claimed in its court filing Oct. 1 that Apple’s iPhone 5, which was released last month, infringes two standards patents and six features patents.

The case is set for trial in 2014. Samsung’s initial complaint names the same eight patents as the reason for alleging infringement by previous iPhone models, as well as the iPad and iPod Touch.





About the author


Jennifer Cowan

Jennifer Cowan is the Managing Editor for SiteProNews.