Samsung Display cancels LCD contract with Apple

Samsung Display has cancelled a lucrative contract to supply Apple with LCD displays, meaning that no new iPods, Macs, iPads or iPhones will use a Samsung display as of next year.

SmartCompany reported in September that Apple had begun shifting memory and display orders to other display manufacturers, including Sharp, LG and Japan Display Co, following its $US1 billion US patent infringement lawsuit win against Samsung.

Earlier this month, there was also strong speculation from supply chain sources that Apple was looking to replace Samsung as a CPU manufacturer with for its iPhones and iPads with Taiwan Semiconductor Manufacturing Company (TSMC).

According to the Korea Times, Samsung Display was the top display supplier to Apple as of the end of the first six months of this year, shipping over 15 million LCD displays to the Cupertino-based consumer electronics giant.

However, Apple’s still supply-chain management made it a relatively low-margin customer for Samsung Display

Samsung Display believes that increasing orders from Amazon and sister company Samsung Mobile will serve as a substitute for the loss of orders from Apple.