The iPad 2 currently sports touch screen displays supplied by LG and Samsung. However, since Apple and Samsung are tied up in a legal dispute, the house of Jobs is reportedly under negotiations with Sharp to replace Samsung min their supply line. The deal is said to be worth around $1 billion.
LG may be the iPad 2’s major supplier, but losing Apple as a client will be a huge blow to Samsung. According to 9to5Mac, there were quality issues involving LG-made displays on the iPad 2. This would have given Samsung an opportunity to increase its production of displays for Apples current tablet. However, the current legal battles involving both the Korean tech giant and the Cupertino firm may have severed their business relationship.
Aside from the patent disputes between Apple and Samsung, there is another possible reason why the Cupertino firm is talking to Sharp. The other reason may have something to do with risk reduction. The risk of problems on the supply line is reduced once the number of suppliers is increased. If ever something were to go wrong with one of the suppliers, then there would be more than one supplier who can pick up the pace.
Is Apple talking to Sharp to replace Samsung, or is it trying to reduce risk? Let us know what you think.