Samsung to cater to Apple's display needs, dedicates a standalone team of 200 employees in an attempt to strengthen ties.
A new report now suggests that Samsung has dedicated around 200 employees that will be working exclusively on displays to be used in future iPads and MacBooks. The move could be a ploy to foster ties between the two rivals, as in the past, both companies have been involved in intense legal battles over patent and copyright infringement, reports Bloomberg. The standalone team was supposedly created on April 1, the day when Samsung created two separate display arms into two separate units handling OLED and LCD technology.
The report further stated that the new team will only be allowed to share information about products within the group, and will also be responsible for sales. Though specific details about this new team have not been revealed yet, nor is any information available as to what kind of displays it will be providing to Apple.
“The new exclusive team for Apple implies that the relationship between Samsung and Apple has improved. This also suggests that Samsung Display will win screen orders from Apple, such as for the Apple Watch”, said Jerry Kang, an analyst at Englewood, Colorado-based researcher IHS Inc.
This new initiative by Samsung is surprisingly similar to LG’s, who have spruced up its display line to cater to IGZO display production to be used in future iPads, along with the rumored iPad Pro. Moreover, sources also suggest that the Cupertino giant is now one of the biggest customers for Samsung components, providing additional components for iPhone and iPads.
In addition to the dedicated display team, notably Samsung will also be manufacturing next-generation A9 processor at its Giheung plant in South Korea to be used in this year’s iPhone and iPad models. Samsung apparently lost the bid to manufacture the A8 chip last year to Taiwan Semiconductor Manufacturing Company, the world’s largest chipset producer, manufactures current A8 System-on-Chip.
It seems the Korean giant is now banking heavily upon more on its display and semiconductor components, after Apple bagged the top spot in the Chinese market, catching up Samsung’s market share. Both companies shipped around 74.5 million smartphones globally in the fourth quarter, each having 19.6 percent market share.