`Make Screens for Apple Devices Only
`
`Jungah Lee
`April 15, 2015 — 1:44 AM EDT
`Updated on April 15, 2015 — 5:08 AM EDT
`
`Attendees view the Apple Inc. Macbook laptop during the company's
`Spring Forward event in San Francisco. In addition to displays, Samsung
`is developing a closer relationship with Apple in semiconductors.
`Photographer: David Paul Morris/Bloomberg
`
`Samsung Electronics Co. created a standalone team of about 200 employees working exclusively on
`screens for Apple Inc. products as the world’s biggest technology companies strengthen business ties,
`people with direct knowledge of the matter said.
`
`The team at Samsung Display Co., which provides screens for iPads and MacBooks, helps develop
`products and is only allowed to share information about Apple business within the group, the people said,
`asking not to be identified because the details aren’t public. The team formed April 1 and also helps with
`sales, the people said.
`
`Samsung is relying more on its display and semiconductor units after falling into a tie with Apple for
`leadership of the global smartphone market. Relations between the companies thawed after they dropped
`all lawsuits against each other outside the U.S., and Apple is now the biggest external customer for
`Samsung components, one of the people familiar said.
`
`1
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`Gold Charm Ex. 2005
`Samsung v. Gold Charm
`IPR2015-01416
`
`
`
`“The new exclusive team for Apple implies that the relationship between Samsung and Apple has
`improved,” said Jerry Kang, an analyst at Englewood, Colorado-based researcher IHS Inc. “This also
`suggests that Samsung Display will win screen orders from Apple, such as for the Apple Watch.”
`
`Next IPhone
`
`The companies each spent hundreds of millions of dollars in legal fees across four continents after Apple
`accused Samsung of copying its iPhone designs. Samsung countered that Apple was using pieces of its
`wireless-transmission technology without permission.
`
`In order to strengthen management, Samsung Display split its liquid-crystal display and organic light-
`emitting diodes units as of April 1, said Kim Ho Jung, a spokesman for Samsung Display. He declined to
`elaborate.
`
`The display business is 85 percent owned by Samsung Electronics, while the rest is held by Samsung SDI
`Co. Samsung Display supplies Samsung’s Galaxy smartphones as well as those by other vendors.
`
`LG Display Co., a rival supplier of panels to Apple, also has a separate unit focused primarily on business
`with its biggest U.S. customer, another person familiar with the matter said.
`
`Jean Lee, a spokeswoman for LG Display, declined to comment.
`
`In addition to displays, Samsung is developing a closer relationship with Apple in semiconductors.
`
`Samsung will make Apple’s A9 processor chips at its Giheung plant in South Korea for the next iPhone
`model, regaining a customer previously lost to Taiwan Semiconductor Manufacturing Co., people familiar
`with the matter said earlier this month. TSMC last year ended Samsung’s monopoly over contracts to
`make iPhone and iPad chips.
`
`The Galaxy maker said April 7 its first-quarter operating profit decline 31 percent to 5.9 trillion won ($5.4
`billion) in the three months ended March. With earnings falling for six straight quarters, the company is
`banking on Friday’s debut of its new Galaxy S6 models to lure back buyers and drive sales of chips and
`displays.
`
`2
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