Apple Mulling Sharp Adjustment in LCD Screen Supply

Published on August 17, 2011
by John Paczkowski

Apple may be seeking a bit more control over its component sources amid heightening demand for the LCD screens found in today’s smartphones and tablets.

MF Global FXA Securities analyst David Rubenstein says the company is considering a $1 billion investment in a Sharp LCD plant. “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,” Rubenstein wrote in a note to clients today.

Though unconfirmed at this point, such a move would make perfect sense for Apple, which must surely be looking to diversify its component suppliers as a hedge against supply chain disruptions, whether they be caused by industrial accidents, natural disasters or ongoing patent disputes with key suppliers like Samsung.

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