Apple display spending to double in 2012: report

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.

SHARE:
1

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

See also: CNET: Live blogging today's event Live Webcast: Let's talk iPad

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

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

1 comment
Log in or register to join the discussion
  • Hardball

    [ul][i]Apple will probably incur a significant price premium for using a higher-resolution display in the new iPad.[/i][/ul]And yet they are still going to sell them starting at $499. This is really going to put the squeeze on Moto, Samsung, Asus, and the rest.

    Nokia is working on a tablet? Does it have one of these very high-resolution displays? Where is Nokia going to get them? And at what price? It's likely that Apple has booked all the capacity in the world to produce these displays, and more capacity won't be coming on line for at least a year.

    The one competitor who might be ready is Samsung, because they could (and should) have seen this coming, and because they have their own display fabs. They've been talking up such a display for months. Let's see how long it takes them to actually ship a comparable tablet in volume.
    Robert Hahn