Tech companies certainly make strange bedfellows. In the midst of Apple’s heated litigation against Samsung and their lineup of Android-based tablets and smartphones, it appears that Apple will be turning to its favorite “copyist” for LCD displays after displays from LG failed to meet Apple’s quality control requirements.
Digitimes is reporting that LG’s 9.7-inch displays failed to pass drop tests to the extent that far too many displays subsequently experienced failed backlight units. In short, the yield rates weren’t up to snuff and now Apple is turning to both Samsung and Chimei Innolux to fill the void.
Indeed, sources tell Digitimes that LG’s iPad display throughput for the month of July was 1 million units less than expected. Originally, LG was planning to ship nearly 4 million units but the aforementioned yyield issues resulted in shipments of only 2.5 million display units.
Meanwhile, Samsung in July manufactured approximately 1 million more iPad display units than they anticipated. The tricky thing here is that Apple is going after Samsung’s mobile division hard and has already attained two injunctions – one in Australia and one in Europe (save the Netherlands) – that prevents Samsung’s new Galaxay Tab 10.1 from being sold in said areas. Displays aside, Samsung is a huge Apple partner and can attribute nearly $6 billion of its annual revenue to its business dealings with Apple.
So we suppose money talks, for the time being, but Apple is clearly looking to lessen its reliance on Samsung going forward. Recent reports have indicated that Apple’s A6 chip will be manufactured by Taiwan Semiconductor Manufacturing Company (TSMC) instead of Samsung.
Lastly, the report relays that LG isn’t completely out of the iPad 2 display mix, with sources indicating that LG can still claim status as the leading iPad 2 panel supplier if it can rectify its quality issues promptly.