Apple could rack up an $11 billion bill with Samsung before 2012 is out

With all the market rivalry, patent lawsuits and sly televisual marketing going on between Samsung and Apple, you’d be forgiven for thinking all ties between these two companies would have already been severed at this heavily tumultuous stage in their relationship, but at the end of the day business is business and both these big names know that need to work together to make money.

The likes of LG and Sharp were initially entrusted with creating displays for Apple’s newest tablet, set to touch down in a couple of days, but when they were unable to deliver due to manufacturing issues, Apple passed the task to Samsung who will now be producing the new iPad’s QXGA display panels (for the time being at least).

As such the cost of these panels will add to a growing bill that Apple currently has under contract with Samsung, which by the end of this year is expected to total somewhere in the vicinity of $11 billion. The running total for parts bought by Apple from Samsung is rumored to stand at approximately $9.7 billion which already dwarfs last years final bill of $7.8 billion.

An unnamed Samsung official stated, “The amount of the current contract is around $9.7 billion. The popularity of Apple products lines the pockets of Samsung as well. The amount may go up to $11 billion, depending on the demand for Apple products.” According to the same source, Samsung are also on the cards to produce a 7.85″ display supposedly for a smaller iPad along with high speed solid state drives (SSDs) for Apple’s latest MacBooks.

Presently displays, processors, DRAM, NAND flash chips and similar components are all supplied to Apple from Samsung. Based on a conversation had at the end of last year between Apple’s CEO Tim Cook and Samsung Electronics’ Chief Operating Officer Lee Jay-yong, the Korean company will be a key supplier of Apple until the end of 2014.

In their current states, it would appear that Apple need Samsung in order to help produce their latest iPad to an acceptable quality and at an acceptable pace, whilst Apple is Samsung’s largest single customer and as such it just makes sense on a corporate level to continue to do business, despite the bad blood in other areas of their relationship.

Source | Via