Peter Misek, an analyst at Jefferies, recently came back from a trip to Japan where he learned quite a few things about the future of Apple products. One of the major stories is that Apple has invested a serious amount of cash, upwards of $1 billion, into manufacturing equipment for one of Sharp’s display factories. Why? Part of it is due to Apple wanting to stop being so dependent on Samsung, who they view as a shameless copycat competitor. The other reason is that Sharp and Apple have worked together to create a new IGZO (Indium, Gallium, Zinc, Oxygen) based display technology that will allow them to make 330 pixel per inch screens at scale, which eliminates the need to go with more expensive IPS LCD panels or thicker and more power consuming dual LED backlighting solutions. IGZO lets Apple deliver display quality that’s close to that of OLED, but for a cheaper price. That doesn’t mean Apple is ruling OLED out. On the contrary, Apple and Sharp are working on OLED panels that they’ll eventually switch to at some point in either late 2012 or during 2013. Back to that factory Apple just invested in, at first it’ll be used for iPad 3 displays, but eventually it’ll make panels for the iPhone 5.
As for the iTV, Misek says that Apple may likely announce and release a television set during 2012. Said product will be called iTV and also use Sharp’s displays. Misek doesn’t know how large it’ll be, whether they’ll be multiple sizes, etc., but this is IntoMobile, so we really don’t care about the idiot box. What’s important here is that the news about the factory, iTV, investing in manufacturing technology, may very signal the birth of a relationship that gives Apple yet another competitive advantage.
Do any other tablet or smartphone makers invest in the companies that build their displays? Samsung of course, LG, maybe even Sony, but who else?