by Christopher Freeburn | October 22, 2012 1:36 pm
Here are your Apple rumors and AAPL news items for today:
Growing Rift: Samsung will end its contract to supply Apple (NASDAQ:AAPL) with LCD panels next year, the Korea Times noted. Samsung was Apple’s largest LCD supplier during the first half of 2012, followed by LG Display (NYSE:LPL) and Sharp. However, shipments fell sharply during the last quarter. The company said it could no longer provide large discounts to Apple and would cease shipping displays altogether next year. Sources said that Samsung has received large LCD orders from Amazon (NASDAQ:AMZN), which will use the displays on its Kindle devices, some of which compete with the iPad. The South Korean electronics giant’s action is seen as another sign that the long-time partnership between the two companies is falling apart as they battle over allegations of patent infringement in courts around the world. It also follows moves by Apple to reduce its dependency on Samsung for critical components in its iPhone and iPad products.
Price Guessing: KGI Securities analyst Ming-Chi Kuo estimates that it costs Apple about $195 to make each iPad Mini, CNET notes. Apple has neither confirmed nor denied the existence of a smaller-screen iPad, but is widely expected to unveil the device at a media event in California on October 23. Kuo says that the LCD screen for the iPad Mini is the most expensive component at $56.50 per unit. The estimates are pure speculation since Apple hasn’t revealed the iPad Mini’s technical specifications. However, they suggest that the company’s profit margin will be smaller on the iPad Mini than with other mobile devices. With rival 7-inch tablets from Google (NASDAQ:GOOG) and Amazon priced around $200, analysts expect Apple to price the iPad Mini below $349, with some analyst suggesting that the WiFi-only entry model will start at $249 or $329.
Legal Backlash: While Apple may have won $1 billion in damages from a California jury back in August, it may pay a price for that victory. The judge in the case has ordered Apple to provide more financial information regarding its profits from the products mentioned in the lawsuit, Forbes notes. Apple had revealed certain confidential financial information during the trial, but the judge says that in order to properly assess additional damages, she requires more information. Apple has appealed the judge’s order, asking that its internal financial data remain sealed, arguing that such internal data is extremely sensitive and that its disclosure could provide competitors with an advantage.
For more about the company, check out our previous Apple Rumors stories.
Source URL: http://investorplace.com/2012/10/monday-apple-rumors-samsung-cancels-apple-lcd-contract/
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