Apple again rumored to invest $1B in Sharp plant for iPhone, iPad LCDs
A rumor that Apple is planning to invest $1 billion in a new Sharp factory for building screens for its iPhone and iPad products has resurfaced, just days after a separate report claimed that the next-generation iPad has been delayed in part because of production constraints from the supplier.
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.
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.
Comments
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.
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.
Japanese business people and executives are usually honorable people. They are tough negotiators and stress details. However, once they agree, they stick to the terms and are usually very timely and precise in their work. Very different from the Koreans... who will double cross their best customer.
Or Snake-In-The-Grass-Google! After SJ mentored the founders and helped the start-up... let their CEO join the Apple board of directors, become privy to the iPhone plans... the snake is not happy with the deal and come up with Android with all kinds of pirated IPRs that they give away for "free". I hope they get spanked in courts big time with multi-billion dollar punitive damages.
Apple is also moving the A6 chip production from Samsung to Taiwan Semiconductor.
Those are two very large pieces of business for Samsung to lose.
Japanese business people and executives are usually honorable people. They are tough negotiators and stress details. However, once they agree, they stick to the terms and are usually very timely and precise in their work. Very different from the Koreans... who will double cross their best customer.
That used to be the case in Japan, but they've been "evolving" in recent years.
One could connect this move with Apple's desire to move component business away from Samsung to other vendors. This because of Samsung copying their intellectual property with their Android phones and tablets.
Apple is also moving the A6 chip production from Samsung to Taiwan Semiconductor.
Those are two very large pieces of business for Samsung to lose.
The way Samsung's been behaving, I'm glad they're losing Apple's business.
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.
Apple's demand on the product is high enough that there would be little capacity left over for anyone else.
Edit: It will very likely be the Sharp 10G plant, Which is the best of all LCD Plant.
One could connect this move with Apple's desire to move component business away from Samsung to other vendors. This because of Samsung copying their intellectual property with their Android phones and tablets.
Apple is also moving the A6 chip production from Samsung to Taiwan Semiconductor.
Those are two very large pieces of business for Samsung to lose.
I'm digging Sharps Quad Pixel displays with the yellow subpixel. In fact
these panels are so good Pioneer has rebranded them as their Pioneer Elite
screens replacing the best Plasma line made...Kuro.
I wonder if they also make Quad Pixel screens in iPad sizes...hmmmm.
Quattron iPads for the win.
this move could make huge sense for apple. high end screens for all their devices and possibly a big step toward an apple brand tv. could be a big kick in the nuts to samsung too.
I doubt that adding Sharp would an act made in malice against Samsung but rather the realization that sourcing screens from multiple vendors makes sense from a delivery standpoint. I think that Apple would love to use LG, Samsung and Sharp so long as the quality is there and their combined manufacturing keeps up with production.
I'm digging Sharps Quad Pixel displays with the yellow subpixel ...
skirting the main topic at hand just for a moment ...
the additive colours of red, green and blue (plus luminance) in today's displays, yield 4.2 billion colours which seems to be quite sufficient. dedicating a separate channel for a sub-spectrum of reds plus greens seems like a marketing ploy to me.
What are the terms of this ?investment?. All reports merely state that Apple is giving $1 Billion to Sharp ?to secure a stable supply of screens?. So is this a loan from Apple ? I seriously hope they are not just giving this money away in order to secure supply - in which case it is certainly an ?investment? of sorts, but in this case why not actually purchase and own the $1.3 billion factory outright ?
Because Apple is not in the business of manufacturing nor a financial institution.
But they are in the business of securing their supply chain to boost manufacturing capability *for* Apple.
Call it a chunky upfront payment for supplies. With some strings attached.
I doubt that adding Sharp would an act made in malice against Samsung but rather the realization that sourcing screens from multiple vendors makes sense from a delivery standpoint. I think that Apple would love to use LG, Samsung and Sharp so long as the quality is there and their combined manufacturing keeps up with production.
agree that multiple sourcing is a good idea to keep component prices down. but if apple can do it more "in house" and not have to deal with their competitors while still maintaining a good price, that would hurt samsung.
that said, its sounding less "in house" and is now more like a huge preorder for sharp screens. but for what? retina ipad, iphones, or an apple tv?