Samsung and Apple's business relationship could be even more strained than we thought. Samsung will no longer supply LCD displays to Apple, according to a report Monday.
"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 reason? Samsung believes Apple is not generating enough revenue for the Korean company, due to its "stiffer supply-chain management structure." A large amount of Samsung's business is now going to Amazon and to handsets that use its OLED displays (specifically, AMOLED displays).
Apple currently uses Samsung as a source for processors, memory chips, and display panels but has increasingly been turning to alternative companies for these device components. Memory chips are one of the first component segments where Apple has been able to sever its Samsung dependency.
For the first half of this year, Samsung was Apple's top LCD supplier, but LG and Sharp will likely pick up the slack as Samsung shipments dwindle.
