Apple and Samsung have had a long relationship that has spanned many years. Over the past few years, this relationship has become quite strained and this has become evident in the last year with all of the legal cases that the two companies have been involved in.
Although both companies rely upon one another to ensure healthy profit margins, the reality is that both are also competing for the same end customers. Currently, Apple makes a number of different products that have components that are supplied by Samsung. Some of these components include processors as well as displays. In providing Apple with these components, Samsung has managed to beef up their bottom line.
This relationship may have worked for them over the past few years, but moving forward, it appears that both companies are now looking to reduce their dependency upon one another. The Korea Times has reported that beginning in 2013, Samsung will no longer supply LCD display screens to Apple. This process has already begun with Samsung reducing their screen supplies from 15 million in the first half of this year to 3 million in Q3. For the remainder of this year, that number will be down to 1.8 million displays.
In addition to this, Samsung is doing away with all of the discounts that they have provided Apple in the past as they say it no longer serves their corporate interest. Now, with the reduction in business, Samsung is looking to fill the gap and in this regard, they will turn to Amazon as well as Samsung Electronics. On Apple’s part, they too are looking to reduce their chip supply from Samsung.