Samsung itself shrugged off market concerns that its component contracts were at risk due to the litigation. Samsung shares tumbled more than 7 percent on Monday, wiping $12 billion off its market value.
"(The) supply contract remains a separate issue from the litigation and there'll be no change to it going forward," said an executive who took part in Sunday's meeting, which was not attended Jay Y. Lee, chief operating offer and heir apparent to Samsung Chairman Lee Kun-hee, according to the executive.
Kwon was promoted to CEO in June, with JK Shin and BK Yoon leading the telecommunications and consumer electronics divisions respectively so as to avoid potential conflicts of interest, as Samsung supplies parts to its main rivals such as Apple, Nokia, HTC Corp and Sony Corp.
As demand for mobile gadgets has soared, Samsung announced just last week a $4 billion investment to boost output at its U.S. chip plant, where it makes chips for the iPhone and iPad. That comes on top of $2 billion of spending Samsung unveiled two months ago to build a new chip plant and the conversion of existing chip lines to make logic chips to power mobile gadgets.
Supply chain
Apple has been looking to spread its supply chain to reduce its reliance on Samsung. The US firm frequently faces a supply crunch when a new product is launched, triggering a consumer stampede that drives demand far in excess of supply and production capability.
Earlier this year, a source told Reuters that Japan's Elpida Memory was selling more than half of its mobile DRAM chips to Apple.
Samsung is diversifying its customer base to reduce its reliance to Apple.
Samsung mainly competes with Toshiba Corp and Korean rival SK Hynix in supplying memory chips for Apple, and LG Display in flat-screen panels.
Samsung has around 70 percent global market share in mobile DRAMs, but Apple sources only 40 percent of its mobile DRAM chip requirement from Samsung, a boon to the likes of Elpida and SK Hynix, analysts say.
Shares in LG Display, which is widely speculated to supply a new and thinner panel for the next iPhone, jumped more than 4 percent on Monday. SK Hynix slipped 0.5 percent in a flat market.
"For its part, Samsung is also diversifying its customer base to reduce its reliance to Apple - adding new ones like Qualcomm, and that'll prove to be a good strategy longer term as Apple component margins are generally low due to its huge bargaining power," said Daewoo's Song.
"Other suppliers may benefit from a worsening Apple/Samsung relationship in the short term, but in terms of margins, I'm doubtful they can make good money from any Apple cookie crumbs that Samsung throws away."
