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Saturday, March 17, 2012

'Samsung isn't sole supplier for Apple iPad'


Despite the widening patent dispute with Apple, a top Samsung executive said the California-based Apple is buying more parts manufactured by Samsung Electronics.

Also, Samsung isn’t the sole supplier of flat-screens to the U.S.-based company.

``As you know, Apple emerged as Samsung’s biggest client and we think the partnership could be stronger throughout this year as well,’’ Samsung Vice Chairman Kwon Oh-hyun, who oversees the company’s parts business including chips and flat-screens, told The Korea Times, late Friday.

Kwon was at Gimpo International Airport with company CEO Choi Gee-sung, Chief Operating Officer (COO) Lee Jay-yong, the head of the revived Strategic Planning Office (SPO) Kim Soon-taek and other top executives waiting for the arrival of Chairman Lee Kun-hee from his trip to Hawaii.

``Our chip-making factory in Austin, Texas, began operating at full capacity from last year in response to our clients,’’ said Kwon.

The Austin plant is producing mobile application processors (MAPs) for Apple. The top memory chipmaker has been supplying A4, A5 and even the latest A5X MAPs to Apple.

Kwon denied a foreign media report that Samsung was the only supplier of the latest iPad’s 2048X1536 high-resolution retina display. ``It’s a matter of allocation.

There is no only supplier in the world. Samsung is just supplying displays to Apple, initially,’’ Kwon said. Apple spokesman Steve Park declined to comment.

The Korea Times earlier reported even with all the ongoing patent issues, Apple is going to buy between $9.7 billion and $11 billion in parts from Samsung depending on consumer demand for iPads and MacBooks. Apple bought $7.8 billion worth parts last year.

To a question over the possibility to produce advanced organic light-emitting diodes (OLED) in Samsung’s plant in southern China, Kwon said, ``I will tell you later because I am still studying more about LCDs.’’

Although the main arrival gate at this airport was packed with over 50 domestic reporters for any updates about the ongoing feud over the family inheritance, Samsung boss Lee declined to comment.

Lee was in Hawaii for a week and there were rumors that the trip was intended to better prepare for the ongoing internal feud.

``No,’’ said SPO head Kim.

Lee is being sued by his brother Lee Maeng-Hee, 80, for 700 billion won.

The dispute centers on eight million shares in Samsung Life Insurance, and 20 shares in Samsung Electronics inherited from their father. Lee Kun-Hee has been accused of keeping the shares for himself.

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