Report: Apple to Pay Galaxy Tab Maker Samsung $7.8B for Components

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galaxy tab n ipad 2

More deals from the supply front, as Apple reportedly inks a deal worth $7.8B with tablet rival Samsung to supply components for the upcoming iPad 2 and other mobile devices created by the Cupertino, Calif. tech giant. The report follows earlier talk the tablet maker had signed agreements with several manufacturers in a bid to corner the supply of parts required for a high-resolution ‘retina’ display.

This latest agreement reported by the Wall Street Journal would make Samsung Apple’s largest supplier, something which has raised eyebrows. Samsung makes the Android-based Galaxy smartphone and Galaxy Tab tablet, which are alternatives to Apple’s MacBook and iPad.


Additionally, Samsung’s LCD panels may replace those currently supplied by LG Display and others, according to another report from The Korea Times. Apple may be interested in using Samsung’s recently-introduced “Super PLS” display for the iPad 2, replacing the IPS (In-Plane Switching) display used by the current iPad. The Super PLS is optimized for tablets and phones, providing greater viewing capabilities.

Although rumors originally surfaced that Apple might include a “Retina Display” for the iPad 2, later reports cast doubt on the upgrade, pointing out that the high-resolution display would be a greater drain on the tablet’s battery than the 1,024-by-786-pixel display now in use.

In January, Apple announced it would provide $3 billion to ensure production of what it would only describe as “very critical” components. The money is earmarked for what Chief Operating Officer Tim Cook said was “capital for process equipment and tooling.”

Apple apparently is confident it can work with even its rivals to produce products that will be technically superior and better received by consumers.

[AppleInsider, 9to5Mac]

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