With more than 70 million iPhones sold in the last quarter alone, Apple has quickly become one of the world’s largest display buyers. To meet the increasing demand for iPhones, Apple has reportedly struck a deal with Japan Display to build a $1.4 billion factory dedicated solely to smartphone displays.
Apple may be about to invest $1.7 billion in a new factory for Japan Display, primarily dedicated to building smartphone screens for Cupertino.
The proposed plant would be located in Ishikawa, Japan, and is set to start operations in 2016. While it will reportedly also produce panels for other companies, its main purpose (hence the Apple investment) would be to produce iPhone displays.
Apple is set to deal Samsung yet another blow by snubbing its displays for all future iOS devices. According to a new report from the Korea Economic Daily, the Cupertino company will purchase panels from Sharp, LG Display, Japan Display, and AU Optronics instead.
Apple’s share price has plummeted this morning, following an earlier report that said the Cupertino company had cut iPhone 5 component orders due to weaker-than-expected demand. When the market opening on Monday morning, Apple stock dropped to $16.23, or 3.1%, to $504.07.
It seemed like Apple was coping well with the iPhone 5 demand, despite it being the company’s fastest-selling iPhone to date. Sure, pre-orders sold out within the first hour of availability, but those who were told they wouldn’t get their new smartphone until October have already begun receiving shipping notifications.
But iPhone 5 production may have hit a stumbling black. The handset’s new 4-inch display, which boasts in-cell touch technology that allows it to be incredible thin, it reportedly causing “significant production constraints” that mean Apple cannot produce the device fast enough.