iPad 3 & iPhone 5/6 Displays to Be Manufactured by Sharp Too by the End of the Year [Apple Reported to Invest in Sharp Plans As Japanese Company Looks to Diversify LCD Production]

Posted on TFTS by Chris Smith on Friday, 25. November 2011 under: Computers & Computing, Mobile/Cell Phones, PCs, Notebooks, Netbooks & Tablets

A few days ago a new report suggested that Sharp will supply iPad and iPhone displays to Apple and we know have further details about the deal between the two corporation.

People familiar with the matter told the Wall Street Journal that Apple is investing in Sharp’s factories in Japan in view of the imminent LCD production start for iOS devices, namely the upcoming iPad 3 but also next year’s iPhone 5/6. Sharp is now said to have its Kameyama No. 2 plant in Mie Prefecture start mass-producing panels for mobile devices instead of TV LCDs, which was its primary purpose so far.

Apparently both Apple and Sharp are going forward with the plans as each company is directly interested in striking a deal with the other party. On one hand we have Apple, which is selling millions of iOS devices each quarter and therefore it needs a steady, uninterrupted flow of supplies. The company is already working with LG and Samsung, and the South Korean companies already provide displays for iOS devices, but by signing a deal of an undisclosed value with Sharp, Apple places itself in an even more comfortable position when it comes to piling up supplies. Also worth noting is the fact that Apple may be interested in slowly moving away from Samsung, its only supplier that it also a fierce rival in the mobile space, and one that Apple also faces in well over 20 international patent-based lawsuits.

In its turn Sharp wants to diversify its LCD production in order to secure more profitable manufacturing contracts for mobile device panels than by sticking only with TV LCD production. Furthermore, Sharp would also benefit from a relationship with Apple as such an association could help it drive more sales of some of its own products.

While the agreement between the two companies seem to be confirmed by the WSJ, neither Apple nor Sharp mentioned any of the financial details it implies. As always, Apple remains very secretive about its manufacturing plans.

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