Apple and Samsung Deal Signed – $240M

Apple [AAPL] have signed a contract with Samsung believed to be worth $240 Million. The contract will see Samsung provide 3 million iPad displays to Apple. The deal is also believed to add more stability to iPad production in case of problems with the primary supplied.

The new deal will see Samsung become the second major supplied of 9.7 inch sized screens for the Apple iPad. The 3 million screens will be used over an unspecified amount of time. This is all according to a high-ranking industry representative who spoke to the Korea Times.

The Apple iPad screen is the most expensive part of the device and costs $80 regardless of which model it is put in. It’s twice the size of the iPhone screen but costs five times more due to the complexities required in building a larger capacitive touch screen as well as it having four times the amount of surface.

Apple are also believed to have extended their contract with LG Display that was originally signed for $500 million taking it up to $800 million to supply 10 million displays.

Apple chose LG as its primary iPad display screen supplier because it favored the in-plane switching (IPS) technology offered by South Korea-based electronics manufacturer. Although it’s not as sharp as vertical alignment (VA) technology currently used by Samsung and Sony on their display panels, it offers a broader 178-degres viewing angel an faster response times.

Samsung have agreed to manufacture IPS screens for a company believed to be Apple which sounds about right considering they chose LG as their primary supplied based on the IPS technology used.

We also hear that Apple are discussing with Samsung screens for the next generation iPhone 4G that is rumoured to be launched mid this year. Perhaps we will see a Super AMOLED screen on the iPhone 4G after all.

“As far as I know, Apple will use [our] LCD panels for its next iPhone models,” the executive said. “We are receiving related orders from Apple,”

Via: AppleInsider

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