Apple and Samsung recently finished their latest court case, but the two companies still work together, even though they have been through a number of court cases over the last two years. According to a recent report, the top supplier of the Apple iPad display is Samsung.
According to research company Display Search, the top supplier of iPad displays in the first quarter of 2014 was Samsung. The company apparently supplied 62 percent of the 9.7-inch displays for the iPad Air. This significant contribution highlights Samsung’s capability to meet Apple’s high standards and large volume requirements.
The Role of LG in Apple’s Supply Chain
The other 38 percent of the iPad Air displays were supplied to Apple by LG. LG has been a reliable partner for Apple, providing high-quality displays that meet the company’s stringent specifications. However, despite LG’s contributions, Samsung has also been supplying Apple with displays for the Retina iPad Mini. This is because other suppliers were apparently unable to meet the necessary yields, which underscores the challenges Apple faces in diversifying its supply chain.
Challenges in Reducing Reliance on Samsung
There have been reports for a while that Apple has been trying to reduce its reliance on Samsung for components due to the legal disagreements between the two companies. These legal battles have included patent disputes and accusations of copying designs, which have strained their business relationship. Despite these efforts, Apple has not been able to fully achieve this goal. The primary reason is that their other suppliers have been unable to supply the components they need in the same quantities and quality that Samsung can provide.
For instance, the high-resolution displays required for Apple’s Retina devices are not easy to manufacture. Samsung’s advanced technology and production capabilities allow them to produce these displays at a scale and quality that few other companies can match. This makes Samsung an indispensable partner for Apple, despite their contentious history.
Moreover, the complexity of Apple’s products means that they require a consistent and reliable supply of high-quality components. Any disruption in this supply chain could lead to delays in product launches and a potential loss of market share. Therefore, while Apple continues to explore other options, Samsung remains a crucial part of their supply chain.
In addition to displays, Samsung has also been a key supplier of other components for Apple’s devices, such as memory chips and processors. This further complicates Apple’s efforts to reduce its dependence on Samsung. The two companies are deeply intertwined in a complex web of competition and cooperation, which is not easily untangled.
In conclusion, while Apple and Samsung have had their share of legal battles, their business relationship remains strong due to Samsung’s ability to meet Apple’s high standards and large volume requirements. Despite Apple’s efforts to diversify its supply chain, Samsung continues to be a top supplier of key components for Apple’s devices. This relationship is a testament to the complexities of the global supply chain and the interdependence of major technology companies.
Source MacRumors
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