According to recent official statements, Samsung Electronics and Nokia will closely collaborate for the first time in their history. The collaboration consists of the fact that the South Korean company will supply LCD screens for Nokia's cell phones, most probably starting at the end of 2007. Nokia is the world's biggest mobile phone producer, selling 350 million devices per year, and only few LCD manufacturers (like Sharp, TMD, EID and ST-LCD) provide screens for their phones. Therefore, the new deal with Samsung will bring benefits for the both sides. Samsung is trying to outrun Sharp, which is the world's number one small-sized LCDs provider and Nokia simply needs more and diversified suppliers.

"Samsung Electronics` LCD Department is recently registered as Nokia`s new vendor. We will provide LCD for mobile phones as early as the end of this year", a Samsung spokesman declared.

An industry official, commenting the deal, said: "Though Samsung Electronics tried several times to supply LCD panels to Nokia, which is the biggest client, Nokia turned it down every time, based on the fact they are competing each other. The reason why Nokia changed their position is because it is having difficulties owing to its price competitiveness decreasing and difficulties in insuring the supply."

In 2006, Samsung sold about 92 million small-sized liquid crystal display screens. By supplying LCDs for Nokia, an increase of 50 million units is expected. Besides the deal with Nokia, it's said Samsung will make premium mobile phone LCD panels for Apple's new iPhone that should be released in a few moths.

This collaboration between the Finnish company and Samsung is not quite a usual one, as they are direct competitors in the mobile devices market. But business is business, and as long as things go well the concept of rivalry kind of loses its meaning.