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Digitimes Research: Samsung to remain in Apple supply chain

Tony Huang, DIGITIMES Research, Taipei [Tuesday 27 August 2013]

Samsung Display is expected to remain as a major panel supplier for Apple products throughout 2013 into 2014 despite previous industry rumors stating that Apple was looking to shift most of its orders away from Samsung, according to Digitimes Research.

The rumors were based off industry buzz in the supply chain stating that due to tensions between Apple and Samsung over technology disputes, Apple was looking to allocate more orders to LG Display as well as to Taiwan-based panel maker AU Optronics (AUO).

However, due to struggles AUO has reportedly faced in producing Retina display technology that will reportedly be used in the next-generation iPad mini, Apple has since rethought its position towards Samsung and will still be dependent on the company to provide the panel technology while decreasing the amount of orders it originally expected to give AUO.

Digitimes Research believes that Samsung will be responsible for producing panels used in Apple's next-generation iPad mini, but that LG will still be the main supplier. Sharp is also expected to land orders for the iPad mini but less than Samsung.

Additionally, LG will still produce more than half of panels used in iMac products but Samsung is expected to be the runner up, said Digitimes Research.

Digitimes Research also said LG will be the main supplier for 9.7-inch iPad panels and that panels used in the next-generation iPhone will come from LG as well as JDI.

Other rumors are currently circulating in the market that LG and JDI have plans to further expand their production capacity for Apple products in 2014 but have yet to state whether the capacity would be enough to draw Samsung out of the Apple supply chain picture.

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