Apple display spending to double in 2012: report

Summary:However, maybe even if the next iPad doesn't sell as well as its predecessors, it might not matter to the display vendors as the latest iPad uses more expensive materials.

Apple is expected to nearly double its display spending budget for its iPad and iPhone brands, according to a new report from IHS iSuppli.

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Analysts predict that Apple will spend approximately $9 billion on display panels for its tablets and smartphones produced in 2012 -- an increase of 91 percent from $47 billion in 2011.

(UPDATE: IHS iSuppli has published a correction. The research firm erroneously wrote that Apple spent $47 billion in 2011. The correct figure is $4.7 billion.)

Note that the report was published before Apple's expected introduction of the newest iPad later on Wednesday. Thus, these figures have the potential to sway considerably depending on how well the third-generation iPad resonates with consumers and business customers.

However, maybe even if the next iPad doesn't sell as well as its predecessors, it might not matter to the display vendors as the latest iPad uses more expensive materials.

Vinita Jakhanwal, senior manager for small & medium displays at IHS, explained in a report that Apple will probably incur a significant price premium for using a higher-resolution display in the new iPad.

However, manufacturers are expected to grant discounts, especially because Apple, in all likelihood, has made investments in display makers like LG, Sharp and Toshiba Mobile Display. By investing in its partners, Apple not only can mitigate these costs to a degree, but it also can be assured of the availability and quality of the displays.

Related:

Topics: iPad, Apple, Hardware, Mobility, Wi-Fi

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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