LG Display Plans to “Reduce Dependence” on Apple in 2013

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LG Display Reduce Apple Dependence

LG Display, a supplier of displays of all sizes for Apple’s products, reportedly plans to reduce its dependence on Apple in 2013 due to what the company calls a “bleak future forecast” for Apple, according to a report Monday from Korean-based News Tomato as translated by BrightWire. The Korean firm hopes to replace any reduced business from Apple with increased production of IPS, 3D, and OLED components for televisions and other large format displays.

Components from LG Display have found their way into nearly all areas of Apple’s product line, including iDevices, MacBooks, and desktop displays. Although Apple sources displays from several companies, LG does appear to quite dependent on the Cupertino company. According to the report, more than 25 percent of the company’s 2012 revenue, and 70 percent of its profits, came from deals with Apple.

If those numbers are accurate, LG Display’s reliance on Apple would indeed make executives uncomfortable if they felt that Apple’s future was bleak. However, it is also possible that LG Display is anticipating a move from Apple to reduce or eliminate orders from the company, and it does not want to get caught off guard if Apple decides to take its business elsewhere.

LG Display has caused some notable problems for Apple recently. The 15-inch Retina MacBook Pro uses high resolution displays from Samsung and LG Display. Those sourced from LG suffer from noticeable image persistence. Further, the new iMac shortage is said to be caused in large part by LG's inability to meet quality standards with the new screen lamination process.

The LG Corporation, parent company of LG Display, operates subsidiaries that create smartphones and tablets that compete with Apple. In December 2012, LG ran a series of ads attacking Apple and its products by name.

Teaser graphic made with help from Shutterstock.

[via Patently Apple]

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2 Comments

Lee Dronick

“However, it is also possible that LG Display is anticipating a move from Apple to reduce or eliminate orders from the company, and it does not want to get caught off guard if Apple decides to take its business elsewhere.”

That sounds like the probable reasoning. Remember a few months ago, if not weeks, when Apple said that would build iMacs in the USA? Now that doesn’t mean that all components would be built here, but it doesn’t mean that they won’t. Furthermore it is my opinion that future looking businesses will get out of relying on stuff from the Korean Peninsula and China; sooner or later the Android will hit the fan in that part of the World.

Lee Dronick

That is what happens when you don’t read the older stories first. I see where Apple is going to use the Quantra plant to make some Macs. My gathering storm warnings still stand.

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