Apple and LG Sign Five-Year Deal for Displays - MacRumors
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Apple and LG Sign Five-Year Deal for Displays

According to a regulatory filing made today by LG, the display manufacturer has signed a five-year deal to provide LCD panels to Apple, a deal that includes an upfront payment by Apple of $500 million. Reuters cites analyst comments that LG currently supplies displays for 70% of Apple's computer products, so the new deal suggests a strengthening of the existing relationship that should bring long-term price and supply stability.

"Although LG Display already had a relationship with Apple, the deal's duration and the size of the advance show that the two companies are involved in a long-term, strategic alliance," said Son Young-jun, a spokesman for LG Display.

The deal appears similar to ones announced in November 2005 in which Apple agreed to pay $1.25 billion upfront to a number of flash memory manufacturers as part of long-term supply agreements.

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