Apple reportedly has inked a deal worth $240 million for Samsung to supply 3 million additional 9.7-inch iPad displays. Although no time period was provided, the deal was confirmed by an industry executive who talked with a Korean publication.
“The most expensive component in the iPad is the display and touch-screen interface that costs $80 for all models,” the person wishing not to be identified told The Korean Times. The iPad display also costs five times as much as the handset’s screen, the person added.
Until now, LG Display Co. was Apple’s primary source for iPad screens. The Cupertino, Calif. company had signed a five-year $500 million pact through 2013. The agreement reportedly was expanded to $800 million and 10 million iPad displays. The deal with Samsung would mean a supply of 13 million iPad displays.
The move will provide Apple some wiggle-room should supply problems occur. Earlier this month, Apple’s chief hardware supplier, Foxconn Electronics, denied any production problems would delay the April 3 launch of the Wi-Fi iPads. An analyst had suggested a “manufacturing bottleneck” could delay sales.
The addition of Samsung has prompted the South Korean company to boost development of in-plane switching (IPS) technology which allows a broader 178-degree viewing range. Apple favors the IPS route used by LG. Samsung had earlier adopted vertical alignment technology which provides a sharper image.
In related news, a Samsung executive said the company was “in deep talks” with Apple to supply displays for the as-yet unannounced 4G iPhones and iPads.
[via AppleInsider and Korean Times]
