Samsung and Apple have an incredibly strange relationship. In the courtroom and in the marketplace, they’re bitter rivals. Constantly at each other’s throats. But when it comes to the manufacturing process, the two companies need each other. Apple relies on Samsung for several intergal components for its devices, like displays and processors, and makes up a huge part of Samsung’s manufacturing profits. In the past, both companies have been able to look past their relationship outside of the supply chain, but that appears to be over now.
According to a report out of the Korea Times today, starting next year Samsung will stop providing Apple with LCD displays. The process is already underway, with Samsung having moved from providing Apple with 15 million panels in the first half of 2012, to 3 million in the third quarter, to what is estimated to be nearly half that, 1.8 million, throughout the rest of the year.
Apparently, the discounts Samsung has provided Apple with in the past are no longer in Samsung’s best interest. Instead, Samsung will turn to both Samsung Electronics and Amazon, who has already increased orders, to fill the gap.
This is just the most recent move in Apple and Samsung’s attempts at decreasing dependency on each other. Apple has already begun to move away from Samsung for chip production. Fortunately, these kinds of decisions are not made overnight, so the affect they’ll have on consumers shouldn’t be noticeable.