After Apple revealed an investment of $ 3.9 billion in components over two years, the entire market was in an uproar to see what Ma plans to buy with so much money. The last expenditure of this magnitude was made to secure supplies of flash memory, something that had a very positive result.
Morgan Stanley bets on the purchase of displays, and now iSuppli joins it on that hunch. "With smartphone sales exploding and a flurry of newcomers to the tablet market this year, competition between manufacturers for small and medium-sized screen supplies has reached fever pitch, limiting the availability of important display types," said Vinita Jakhanwal , from IHS. "Because of this, Apple decided to invest some of its huge cash reserve to ensure the supply of advanced displays."
The screens employed by Apple on the iPad and iPhone 4 make use of the In-Plane Switching (IPS), which provides color fidelity at extreme viewing angles. They also employ low temperature polysilicon (LTPS), and the combined use of these technologies shows that Apple must have closed deals with three display manufacturers: LG Display, Sharp Corp. and Toshiba Mobile Display. Ma's investment would go far beyond simply buying the production from these companies to finance the construction of new facilities would be one of the ways to secure supplies.
(via Fortune Tech)