Apple Planning To End Business Relations With Samsung
Apple and Samsung may have sued each other over patents in various courts worldwide but this did not affect the business relations between them. However, now it seems that it may affect them very soon.
Samsung is about to hit a rough patch because earlier this week, shares of Samsung Electronics fell 6% percent. This effectively swiped away $10 billion from the company’s mighty market value.
The sell-off was sparked by speculation that Apple is planning to drastically reduce its working relationship with Samsung. The Cupertino-California-based company is said to have begun placing chip orders with Samsung rival Elpida instead.
Online news sources like Reuters and the Wall Street Journal (WSJ) indicated that Apple had secured the services of several suppliers (none of which is Samsung) to provide new iPhone screens for the next gen-device, many investors went into a panic and dumped the stock.
Choi Do-yeon, an analyst at LIG Investment & Securities, told Reuters:
“It looks like Apple doesn’t want to see Samsung and hynix dominate the chip market. Apple wants to maintain its bargaining power by keeping Elpida running.”
So far, neither Samsung nor Apple will formally commented on the matter.