Apple Relies On Samsung as a Major Display Supplier for iPads

Apple Relies On Samsung as a Major Display Supplier for iPads

by Chris Thomas on 12 May 2014 · 1494 views

1 full Apple Relies On Samsung as a Major Display Supplier for iPads

Despite the fact that Apple and Samsung have been engaged in some pretty hostile lawsuits lately, the two companies still seem to be working together as tech giants.

According to market research company DisplaySearch, Apple is relying on Samsung as one of its primary display suppliers for the iPad Air and iPad with Retina.

Samsung Regains Its Position as Apple's Leading iPad Display Provider

Samsung Display (the company's display manufacturing branch) apparently reclaimed the top spot as the number one supplier of iPad display panels back in the first quarter of this year, shipping more than 5 million units of 9.7 inch panels that project screen resolutions of 2048x1536.

With that high of a shipment volume Samsung Display accounts for about 62% of displays shipped with the aforementioned specifications.

On the other hand, LG Display (one of Apple's other major display providers) recently saw a subsequent decrease in its share of shipments for the same display panel size/resolution.

After supplying about 61% of the 9.7 inch/2048x1536 panels shipped in the fourth quarter of 2013, LG Display has seen that number dwindle down to 38% while being effectively replaced by Samsung Display.

iPad Sales Drop Below Projected Expectations

On April 23rd Apple reported that its iPad sales dropped by 15.9 percent at the end of this year's second fiscal quarter.

Although this certainly has nothing to do with Samsung's involvement in the display panel supply, it is worth mentioning because sales fell far below projected levels. Wall Street analysts predicted that the company would sell at least 19 million units, but it only sold a bit more than 16 million.

Still, the iPad has been the fastest growing product line in Apple's history, selling more than 210 million units in just 4 years since its release in 2010.

Furthermore, Apple's CEO Tim Cook has explained the decrease in sales by stating that there was a backlog of iPad Minis that needed to be shipped during the second quarter.

Apple and Samsung - Competing While Working Together to Improve Mobile Tech

Samsung and Apple have an ongoing relationship that could be called a love-hate tech romance. The two companies have been competing against each other yet also working together to produce some very impressive mobile devices and software interfaces.

While Apple has already enlisted the help of Taiwan Semiconductor Manufacturing Company (TSMC) in producing the upcoming A-series processors, there is still a possibility that Samsung could be involved in the production and supply of those as well.

The Bottom Line 

With the Samsung Galaxy and the Apple iPhone being the two most popular smartphones in the world right now, and speculation about one company buying the other's patent rights, it may seem odd that these corporations would work together so frequently.

However, with the advancement of technology and increased profits beckoning it is rather obvious that their business relationship is mutually beneficial and productive to say the least.

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