By Todd Bernhard on Tue, 05/13/2014
Apple and Samsung have had a love-hate relationship for quite a while. Despite the ongoing litigation between them, they are codependent on each other for the iPad's success. A new report, referenced by cnet, shows that Apple relies on Samsung for a majority of the iPad's screens, with LG responsible for a smaller percentage. While both parties are trying to use the courts and the free market to gain an advantage, Samsung still profits from every iPad, and Apple needs a thriving Samsung to meet demand. This seems crazy, but it's the highly leveraged, co-opetition model that is prevalent in so many industries today.
To their credit, Apple has purchased companies and acquired technologies that are critical to their success. Apple has recently acquired PrimeSense, the people behind Microsoft's Kinect, and they are expected to acquire Beats for $3.2 billion. The next iPhone or iWatch should have a sapphire coating thanks to Apple's new factory. Displays are one of the most significant areas where Apple is reliant on outside sources, and the display quality and Retina brand is something Apple relies heavily on. To have their primary supplier be archenemy Samsung may be causing angst for Tim Cook, the Apple CEO known for his supply-chain prowess. I would not be surprised to see a move in the display area at least a switch to a more independent provider.