Apple (NASDAQ:
AAPL) is attempting to
sever ties with Samsung, one of the company's largest suppliers. Is this a wise move for the Mac maker, or should Apple continue working with its arch-nemesis?
The iPhone 5 is slated to be the first device that will abandon a few key Samsung components -- the display and memory chips -- for supplies from another producer. This transition may be directly responsible for the
massive shortages that are expected to accompany the device's launch. In fact, there might be
five million fewer units than anticipated.
Apple has not commented on the rumored shortage, but if it proves to be true, it could tarnish the company's quarterly results.
In the months after the iPhone 4S arrived, Apple enjoyed record quarters and record iPhone sales. Research shows that demand for the iPhone 5 might be
even highersignificantly different from the iPhone 4S, reports claim.
Apple might also acquire new screens from LG, which recently produced a five-inch display that
dwarfed the specs of the existing Retina Display.
In this regard, Apple had no choice but to leave Samsung. It may be the world's largest producer of LCD televisions, but Samsung's display technology seems to be lagging behind its competitors. Apple does not only want to have the best displays of any device manufacturer -- it
needs to have them.
That said, Apple never confirmed that it used Samsung displays in the iPhone 4S, so the reports of a transition may be totally false. Apple did, however, partner with Samsung to
build Retina DisplaysFollow me @LouisBedigianBZ© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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