Trouble at Samsung as Apple Reportedly Considers Pullout
Consumer electronics giant Samsung has hit a rough patch. Today alone, shares of Samsung Electronics fell 6% percent - a move that effectively swiped away $10 billion from the company's mighty market value.
The sell-off was sparked by speculation that Apple is planning to drastically reduce its working relationship with Samsung. The iDevice maker is said to have begun placing chip orders with Samsung rival Elpida instead.
Following compelling reports by the likes of Reuters and the Wall Street Journal, which indicated that Apple has secured the services of several suppliers (none of which is Samsung) to provide new iPhone screens for the next gen-device, many investors went into a panic and dumped the stock.
"It looks like Apple doesn't want to see Samsung and hynix dominate the chip market. Apple wants to maintain its bargaining power by keeping Elpida running," Choi Do-yeon, an analyst at LIG Investment & Securities, tells Reuters.
For now, not surprisingly, neither Samsung nor Apple will formally comment on the matter.