Samsung Electronics is reportedly the only supplier of new screens with 2048*1536 resolution for the latest Apple iPad and enjoys solid sales and margins. But the company hopes to boost its sales to Apple this year to around whopping $11 billion thanks to the new iPad as well as a forthcoming model with 7.85” screen.
“The amount of the current contract is around $9.7 billion. […] The amount may go up to $11 billion, depending on the demand for Apple products,” said an anonymous Samsung employee in an interview with the Korea Times.
Although Apple and Samsung are battling in courts, they remain key partners as Samsung manufactures chips, screens, memory and some other components for Apple. The companies are projected to work together until at least the end of 2014, therefore Samsung is very well informed about Apple’s demands and plans. Among the most interesting plans of Apple is probably to release a “baby” iPad with 7.85” screen this year.
“The contract is expected to rise to $11 billion by the end of this year as Apple is planning to release a smaller iPad, probably with a 7.85” screen, and to sell more of its MacBook Air PCs using Samsung’s faster solid state drive (SSD) storage,” added the source.
The intention to launch a smaller iPad contradicts to Apple’s negative attitude towards 7” media tablets back in 2010. Moreover, with the iPad 2 staying in Apple’s lineup means that it will be hard for the company to position a 7.85” model this year. Still, a “baby iPad” cannot be completely excluded as there are loads of 7”-class media tablets from other companies.
It is reported that Apple’s top management still believes Samsung is the only parts maker in the world ideally-positioned to meet all of the critical conditions, such as better pricing, technologically-enhanced products, on-time delivery and the capability to immediately respond to any emergency situation.