The two battery suppliers, both based in China, Amperex Technology Limited and Tianjin Lishen Battery could be the first wave in Apple dropping Samsung for key parts for its devices. Apple’s deteriorating relationship with Samsung have been rumored ever since the legal battles started. There have been various news reports from various Asian media outlets predicting Apple’s switch to alternate suppliers for displays, CPUs and, in this case, batteries. Many of these reports, however, were later debunked, but that hasn’t stopped speculation that changes are afoot.
As much as the media would like to believe that a legal rift between Apple and Samsung would trickle down to their business relationship, it seems that as of now the effect isn’t as pronounced as feared. In fact, Samsung was said to be taking steps to separate its component business from the smartphone business, reducing the impact of any legal fallout on the company’s contracts with Apple.
Samsung is one of the few companies with large enough facilities to cater to the scale Apple operates on, and a signifcant amount of Samsung’s component business revenues come from Apple. As TechCrunch points out, a relationship collapse initiated from either side would ultimately cause significant short term damage to both companies, and it would take a while for them to recover.
Via: BrightWire, TechCrunch
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