Apple spends $3.9 billion in displays

Apple is investing $3.9 billion to secure LCD display supply for its iPhone and iPad products, according to research by IHS iSuppli.

Apple’s Chief Operating Officer, Tim Cook, revealed that the company had made a number of long-term supply agreements with three suppliers of LCD displays. IHS iSuppli believes these three companies are LG, Sharp and Toshiba.

According to IHS iSuppli’s market analysis, these deals would amount to a spend of $3.9 billion by Apple over the next two years, marking a significant investment by the company to ensure it has enough displays for its product lines, the success of which have allowed for such large display spending.

Apple is firmly wedged into the display market, maintaining close ties and spending a fortune on millions of displays for its iPad and iPhone. In fact, it spent $2 billion on displays for these in 2010 alone, with LG, Samsung, Sharp and Toshiba providing supplies.

It is expected that the partnerships will strengthen as Apple pumps in investment funds so that there is a constant flow of production and supply of IPS and LTPS LCD panels for the company.

This will give Apple a significant share to pick from and open up new competition with rivals. The deals may ensure that competitors using the Android platform cannot use up all the display supply on the market, which would severely affect production lines.