Apple’s relationship with its screen supplier Samsung, who it’s also in legal battles with over patent infringement of its iPhone and iPad, is getting so bad that Apple will be moving their screen production to rival Sharp.
The rumour originates from Peter Misek, who is a New York-based analyst, who wrote a research note after visiting Japan and the subsequent conversations he had with manufacturing executives believes Apple will change screen supplier from Samsung to Sharp in 2012.
This would be a big blow for Samsung, but, probably expected – both companies have been embroiled in a tit-for-tat legal battle in a series of courts cases across the world, which lead to Samsung having some of its products banned in Australia and Germany.
“It’s a huge deal for Sharp because they spent significant amounts of capital to try and expand capacity and upgrade their facilities,” Misek said in an interview. “It gives Apple a partner that they can control manufacturing and secure supply at a lower price.”
According the Misek many traditional TV companies are already running scared of the idea of Apple joining the TV market and are scrambling to figure out what Apple’s TV will look like and do, Misek said.
He reckons that Apple will take the iPad, iPhone and possible Apple TV production to Sharp’s Sakai facility. He also postulated that they will likely begin commercial production of what he called “iTV” in February.
Apparently rival TV makers are at least 6 to 12 months behind where Apple might be and lack the software and cloud-computing expertise to compete with Apple, he said.
Misek reckons that Apple has splashed as much as $1 billion on equipment for the manufacturing and will take exclusive hold of one of Sharp’s facility’s to greater control its output and standard.
The company’s relationship with Samsung is deteriorating and Apple has shifted some purchases of flash memory from Samsung to Toshiba Corp.
“Apple likes to go right to the factory floor, redesign the process, monitor it,” Misek said. “Except with Sharp it looks like they’re taking that one step further where they will actually own the intellectual property and physically own the equipment.”
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