Report: Samsung creates dedicated team to supply Apple with screens
Samsung Electronics Co. has assembled a dedicated team of around 200 employees to work exclusively on producing screens for Apple’s iDevices. The team, formed April 1, falls under the purview of Samsung Display Co. and will focus on developing display technology for Apple’s iPads and MacBooks as well as assisting with sales. (via Bloomberg)
Samsung’s profits from its mobile business unit have slipped over recent quarters as the company lost market share to Apple and Chinese smartphone manufacturers, Xiaomi and Huawei. As a result, the company is more reliant than ever on its display and semiconductor business units.
Samsung and Apple appear to be on better terms since agreeing to drop all patent lawsuits outside the U.S. last year. According to Bloomberg’s sources, Apple is now Samsung’s biggest external customer for components.
The two companies were engaged in numerous patent suits worldwide, each in turn spending staggering amounts on legal fees. Apple accused Samsung of copying designs from the iPhone, and Samsung in turn accused Apple of using its wireless transmission technology without its go-ahead.
Earlier this month Samsung announced that it would split its Samsung Display business unit into two separate units to focus on LCD business and OLED business respectively. They split ostensibly so that each unit can focus on its core sales and marketing strategies. It’s unclear if this bears any relation to the new team focused on Apple.
The display business is co-owned by Samsung Electronics and Samsung SDI Co., with Samsung Electronics being the largest shareholder at 85 percent. Samsung Display supplies display technology for Samsung’s Galaxy range of smartphones as well as smartphones made by rival vendors, such as Apple.
Samsung is also back in business as far as Apple’s A9 processor chips are concerned. Earlier this month Bloomberg reported that the South Korean tech giant had been named to supply Apple with the processing chips due to go into its next iPhone. Samsung, a long-time chip supplier to Apple, lost that business to Taiwan Semiconductor Manufacturing Co. in 2013.
Last week Samsung reported a first-quarter operating profit decline of 31 percent to 5.9 trillion won ($5.4 billion). The company is relying heavily on its flagship Galaxy S6 models to drive sales for the mobile business unit and create renewed demand for its chips and displays.
Photo credit: David Woo | Flickr
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