Apple is all set to make an investment worth $1 billion into Sharp’s Liquid Crystal Display manufacturing plant in Japan, according to a new report.
If the report is true, it will beef up Apple’s supply chain for the display products for the iPhone and iPad. Not just that, the move is also likely to reduce the company’s dependence on other suppliers, Samsung in particular with which it is in the midst of an intensified legal dispute.
Reuters quoted a sales note written by MF Global FXA Securities in which analyst David Rubenstein explained: "We think it is highly possible that Apple will make an investment in Sharp's Kameyama plant to the tune of around US$1 billion in order to secure a stable supply of screens for iPhones and iPads. This would have a material impact on Sharp's profitability."
There were reports in the local Japanese media already about the iPhone maker’s supposed plans of investing, what they estimated to be a figure as high as $1.3 billion (100 billion Yen), in Sharp.
The reports also hinted towards the two companies reaching an agreement, which would see Sharp supplying its power efficient screens for Apple’s forthcoming product iPhone 6, scheduled to be released in 2012.