The AP today revealed that Apple and LG have come to a big agreement over the next five years for display technology. The agreement spells out that the displays won’t just be for monitors but also for iPhones and iPods. Also there isn’t anything in the way of exclusivity in the press release but perhaps Apple would like to have first dibs on LG’s displays.
SEOUL, South Korea (AP) — LG Display Co. has reached a long-term deal with Apple Inc. to supply flat panels to the iconic maker of computers, music players and smart phones. The contract between the two companies is for five years and calls for LG to receive an advance payment of $500 million sometime this month, the South Korean company said in a regulatory filing Monday. Seoul-based LG Display and Apple, headquartered in Cupertino, California, planned to decide later on details such as the number of panels LG will provide, LG said. LG Display declined to provide further details. Shares in LG Display fell 0.8 percent to close at 23,550 won ($17.33).
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Microsoft also announced a screen manufacturing agreement today. Theirs was a much smaller agreement with Israeli touch screen manufacturing firm N-Trig
LG and Apple compete (obviously) in the LCD display business and also in smartphone handset (LG Voyager, Prada etc.). This compete/cooperate model isn’t uncommon in the electronics industries where conglomerates that cross industries are common.
It may also make sense that Apple makes large investing agreements while the US dollar is still strong.