It's Samsung AMOLED Really In Short Supply?

Samsung Galaxy S with Amoled screenIt's hard when one of your main supplier is also one of your primary competitors. And HTC among others is finding this out the hard way.

HTC is the primary seller of Android powered phones. And one of the main selling points in some of their primary handset like the Incredible, Desire, Eris, EVO 4G and Nexus One was the Amoled screens.

This screens are made by Samsung which have a virtual monopoly with 97% of the output.

Samsung is one of the worlds largest seller of cell phones. And while they claim that their subsidiaries making parts like the LCDs and Amoled screens don't give special pricing or treatment to the handset making division. This is hard to believe, specially with the recent "amoled shortage"

Since last year HTC have been on a roll. Rolling better devices at an awesome pace. And this momentum seem unstoppable. But then it happens. Many of their to selling devices are on back order or their launch been delayed. And this is only happening because of one thing. They dont have the Amoled screen that are supplied by Samsung.

Samsung claim is because of a global shortage in the supply. But all this is happening at the same time that Samsung is rolling out their Android powered Galaxy S with all of its variants. 

Samsung admitted they are desperate to gain market share on the smartphone market and wants to increase their share from 5% to between 10-15% by years end. And essential to this plan is their target sale of between 15 and 20 million Galaxy S devices by years end.

Samsung also plans its biggest ad campaign spending in the US to promote its Galaxy S variants. Wich is rumored to be close or over $100 millions.

With so many at stakes for Samsung and its Galaxy S is hard not to come to the conclusion that for them having their competitors struggle at the same time when they are launching is very beneficial.

One of the main features on the Galaxy S is without doubt the AMOLED screens. So I am not buying their argument that is just a supply shortage. I believe they are doing it on purpose. While I admit their should be some shortage in the production of Amoled screens. I don't believe they give or their customer the same treatment as they give their division. 

HTC most have feel the same way as is rumored they will be ditching Amoled for Sony's Super LCD. Apple also felt the same way when it decided to go with the retina display instead of Amoled. 

While Samsung may be feeling all powerful and mighty by having the power to affect its customers/competitors business for their own benefits. In the long run it will backfire. 

I can see more and more manufactures looking to have less and less main components been made by one of their primary rivals.