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Despite High-Profile Conflicts, Apple And Samsung’s Business Bonds Stronger Than Ever

August 7, 2013

Michael Harper for redOrbit.com – Your Universe Online

Though the two companies are in ongoing battles over patents and the overall smartphone market, Apple and Samsung still have a mutually beneficial working relationship that they must maintain.

According to a new report from NPD DisplaySearch, this relationship is thriving as Apple has been increasing their orders of screens from the Korean company. It had been previously rumored that Apple would begin moving away from Samsung as a component supplier, but in the quarter between April and June, Samsung shipped more iPad displays than LG, Apple’s other screen supplier.

In fact, Apple’s orders increased by 80 percent to 4.1 million units over the previous quarter, when they ordered 2.3 million displays, according to Cnet.

And AppleInsider says Samsung may also get tapped to provide the retina screens expected in this year’s possible release of the iPad Mini 2. LG had been the primary supplier of these iPad mini screens, but today’s report claims Samsung could out-ship them when the new device launches.

In March a report from the Korea Economic Daily claimed that Apple was weaning itself off of Samsung-provided displays and moving towards screens made by LG, Sharp, Japan Display and AU Optronics. The report cites a document that was allegedly sent out from Apple to the aforementioned manufacturers asking for displays five to ten months out from the release of their new, unreleased phone.

Last month, however, ET News reported that Apple changed its mind and dropped AU Optronics as a supplier after they couldn’t get the right yields from their displays. According to the report, AU Optronics was slated to provide screens for the rumored iPad mini 2 along with LG and Sharp.

This report also cites a “person from the LCD industry” as saying: “Samsung Display is known to have developed an LCD sample for iPad mini 2. The company may be able to secure more order than Sharp did, if it can stabilize production yields.”

A little over a week later, the Wall Street Journal claimed Apple was switching to Samsung to handle their newest batch of Retina displays.

Though the Journal report does not mention any issues with AU Optronics’ yields, they do claim Apple chose Samsung for their ability to produce the screens they want in the right quantities. This Journal report also stated that the next iPad Mini will use a Retina display.

Apple is largely expected to repeat last year’s product release schedule. The iPhone 5, fourth generation iPad and iPad Mini each debuted within a month of one another. Though the company never gives much of an advance notice as to when new products will arrive, they have said that their new mobile operating system iOS 7 is scheduled for a fall release. Traditionally, new versions of iOS arrive shortly after the announcement of the new iPhone and days before pre-orders ship.


Source: Michael Harper for redOrbit.com - Your Universe Online



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