Apple again rumored to invest $1B in Sharp plant for iPhone, iPad LCDs
MF Global analyst David Rubenstein resparked the rumor in a sales note to clients on Wednesday, giving shares of the Japanese company a lift of more than 2 percent, as noted by Reuters.
"We think it is highly possible that Apple will make an investment in Sharp's Kameyama plant to the tune of around $1 billion in order to secure stable supply of screens for iPhones and iPads," he said, adding that Apple's investment would have a "material impact on Sharp's profitability.
Last December, Japanese business newspaper Nikkei claimed Apple would pay a "large portion" of the 100 billion yen ($1.3 billion) required to build a new LCD manufacturing facility and would buy "most" of the panels produced there. Production was said to begin at the plant in the later half of 2012.
On Monday, a rumor emerged that Sharp's supply of 9.7-inch 2,048 by 1,536 resolution next-generation iPad displays are insufficient for an iPad 3 launch in 2011. DigiTimes said the high-resolution displays are "mainly supplied" by Sharp with a high price, and Apple's other suppliers Samsung Electronics and LG Display are both "unable to reach a good yield."
"Due to iPad 3's requirements over the physical thinness, rich color support and toughness will all conflict with the panel's technology restrictions; therefore, this could cause a delay in the launch," the report said.
LCD displays have reportedly been a limiting factor for both the original iPad and the second-generation model.
Apple was also said to be helping Toshiba on a new LCD plant last year, but an official with the supplier claimed "nothing had been decided" regarding a new plant. In April, reports claimed Toshiba had become the sole manufacturer of LCDs for the iPhone.
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Edit: It will very likely be the Sharp 10G plant, Which is the best of all LCD Plant.
These reports should also consider the possibility that Apple has TV screens in mind, given the multiple sources that confirm such a product in Apple's upcoming plans.
If true, with that level of investment I would hope this would give Apple some say on who also can get supplied or even gain access to products they co develop and design and Sharp manufacture. If not we might see Sharp a year or two down the line launching yet another Android piece of crap.
These reports should also consider the possibility that Apple has TV screens in mind, given the multiple sources that confirm such a product in Apple's upcoming plans.
Good point.
These reports should also consider the possibility that Apple has TV screens in mind, given the multiple sources that confirm such a product in Apple's upcoming plans.