Currently the iPad 2 features displays from LG and Samsung with LG commanding the lion’s share of production. According to Reuters this is due to change. Allegedly Apple is “working out a deal with Sharp” involving a pre-payment (up to $1 billion) to ensure future display supply.
Although LG is the primary supplier of iPad 2 displays, according to 9to5Mac the biggest loser will actually be Samsung. Samsung only recently began supplying IPS panels for the iPad 2 and following reports over quality control issues with LG’s displays, Samsung was in a position to increase production.
There’s three possibilities which might explain the alleged investment in Sharp by Apple. Option one is that Apple has decided that it must reduce risk by spreading manufacturing over three companies. Option two is that Apple is protecting itself from possible blow back from current and future patent disputes. The third and final option is Apple simply wants increase its margins by making an early investment in Sharp.
Let us know which reason you think fueled Apple’s alleged investment in Sharp for iPad displays.
via 9to5Mac
