gold_iphone_5s_topKey display supplier Sharp is reportedly seeking to reduce its reliance on Apple, with sources telling Nikkei the company has offered Apple 30 billion yen ($293 million) to purchase the equipment located in Sharp's Kameyama Plant No. 1 that currently churns out displays for the iPhone. Apple contributed roughly half of the 100 billion yen (~$1 billion) cost to convert the plant from large TV panels to small iPhone displays in 2012, with Apple owning the plant's equipment.

By taking a leadership role in running the plant, Sharp apparently seeks to diversify its customer base. Being able to supply panels to Chinese smartphone manufacturers, for example, would make Sharp less dependent on Apple. The U.S. technology giant is said to be demanding that the Japanese company not supply panels to Samsung, Apple's biggest smartphone rival.

According to the report, the plant is currently running at 90% capacity producing displays for the iPhone 6, giving Sharp some flexibility in the negotiations until demand from Apple starts to slow down with the natural cycle of iPhone production.

Apple typically sources its displays from several suppliers, and Apple's main iOS device assembly partner Foxconn has reportedly been looking to partner with Sharp to begin some of its own production of iPhone and iPad displays. It is unclear how willing Apple will be to give up the display equipment, but if it does provide Sharp with some more flexibility there are still a number of display partners that could help fill any void left by Sharp's diversification.

Reliance on Apple is major issue for many suppliers, both in terms of managing the cyclical nature of the business given Apple's product release patterns and the potential for major disruptions of the companies' revenue streams should Apple suddenly decide to change suppliers. As a result, it's a delicate balancing act for many companies happy to have Apple's business but looking for other opportunities to sustain themselves when Apple's demand wanes.

Related Forum: iPhone

Top Rated Comments

nagromme Avatar
143 months ago
"Thanks for your investment allowing us to get this high-end plant up and running, Apple! But we'd rather use it to serve your competitors! Is that OK? Here, I found a nickel! You can have it!"
Score: 17 Votes (Like | Disagree)
jayducharme Avatar
143 months ago
Wasn't Sharp on the brink of bankruptcy not long ago? This seems like a lousy way to thank Apple for helping them.
Score: 8 Votes (Like | Disagree)
brendu Avatar
143 months ago
I like the other companies trying to spin their inability to use sapphire. I recall an article from maybe a year ago where saying that Apple was actively looking to use their cash hoard in ways that would allow them to create new products that competitors can't easily copy. This is a perfect example of that.
Score: 7 Votes (Like | Disagree)
rdlink Avatar
143 months ago
Apple will have made back the money invested from product revenues about 100 times over by now.

Yeah? So? They had a business advantage. They exercised that advantage. They found a willing partner. They're reaping the benefits of the investment. I say don't let Sharp out of the deal.
Score: 5 Votes (Like | Disagree)
MrXiro Avatar
143 months ago
Apple will have made back the money invested from product revenues about 100 times over by now.
That's an entirely different matter.

Essentially Apple invested money into a company, that doesn't mean they received their LCD parts for free. Also Sharp making a portion of an Apple Product (and even then they don't make all of that portion) does NOT mean that they are the key to the success to those devices. Apple spent multiple millions of dollars to make the iOS devices a success and if Sharp didn't exist they would have just sourced the LCD part from someone else.

From my point of view this is an insult of a deal.

It's like if I asked you for 1000 bucks so that I could remodel my house... I remodeled my house and sold it for 1 million bucks. Then I made you an offer of repaying you $600 of the $1000 you gave me... does that sound fair to you?
Score: 4 Votes (Like | Disagree)
MrXiro Avatar
143 months ago
...company has offered Apple 30 billion yen ($293 million) to purchase the equipment located in Sharp's Kameyama Plant No. 1 that currently churns out displays for the iPhone. Apple contributed roughly half of the 100 billion yen (~$1 billion) cost to convert the plant from large TV panels to small iPhone displays in 2012, with Apple owning the plant's equipment.
I don't see why Apple would take this deal. Seems like a huge disadvantage to them... They didn't spend $500 million so they can get back less.
Score: 4 Votes (Like | Disagree)

Popular Stories

iPhone 17 Pro Lower Logo Feature 1

iPhone 17 Pro Coming Soon With These 14 New Features

Monday June 30, 2025 1:08 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are less than three months away, and there are plenty of rumors about the devices. Apple is expected to launch the iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max in September this year. Below, we recap key changes rumored for the iPhone 17 Pro models:Aluminum frame: iPhone 17 Pro models are rumored to have an...
Apple Watch Ultra Night Mode Screen

Apple Watch Ultra 3 Launching Later This Year With Two Key Upgrades

Wednesday July 2, 2025 1:13 pm PDT by
The long wait for an Apple Watch Ultra 3 appears to be nearly over, and it is rumored to feature both satellite connectivity and 5G support. Apple Watch Ultra's existing Night Mode In his latest Power On newsletter, Bloomberg's Mark Gurman said that the Apple Watch Ultra 3 is on track to launch this year with "significant" new features, including satellite connectivity, which would let you...
A18 Pro Chip

New MacBook With A18 Pro Chip Spotted in Apple Code

Monday June 30, 2025 8:05 am PDT by
Apple is developing a MacBook with the A18 Pro chip, according to findings in backend code uncovered by MacRumors. Earlier today, Apple analyst Ming-Chi Kuo reported that Apple is planning to launch a low-cost MacBook powered by an iPhone chip. The machine is expected to feature a 13-inch display, the A18 Pro chip, and color options that include silver, blue, pink, and yellow. MacRumors...
iPhone 17 Pro Lower Logo Magsafe

iPhone 17 Pro's New MagSafe Design Revealed in Leaked Photo

Wednesday July 2, 2025 8:37 am PDT by
The upcoming iPhone 17 Pro and iPhone 17 Pro Max are rumored to have a slightly different MagSafe magnet layout compared to existing iPhone models, and a leaked photo has offered a closer look at the supposed new design. The leaker Majin Bu today shared a photo of alleged MagSafe magnet arrays for third-party iPhone 17 Pro cases. On existing iPhone models with MagSafe, the magnets form a...
macbook air spacegray purple

Apple Planning to Launch Low-Cost MacBook Powered By iPhone Chip

Monday June 30, 2025 3:20 am PDT by
Apple is planning to launch a low-cost MacBook powered by an iPhone chip, according to Apple analyst Ming-Chi Kuo. In an article published on X, Kuo explained that the device will feature a 13-inch display and the A18 Pro chip, making it the first Mac powered by an iPhone chip. The A18 Pro chip debuted in the iPhone 16 Pro last year. To date, all Apple silicon Macs have contained M-series...
iOS 18

Apple Releases Second iOS 18.6 Public Beta

Tuesday July 1, 2025 10:19 am PDT by
Apple today seeded the second betas of upcoming iOS 18.6 and iPadOS 18.6 updates to public beta testers, with the betas coming just a day after Apple provided the betas to developers. Apple has also released a second beta of macOS Sequoia 15.6. Testers who have signed up for beta updates through Apple's beta site can download iOS 18.6 and iPadOS 18.6 from the Settings app on a compatible...
Wi Fi WiFi General Feature

iOS 26 Adds a Useful New Wi-Fi Feature to Your iPhone

Wednesday July 2, 2025 6:36 am PDT by
iOS 26 and iPadOS 26 add a smaller yet useful Wi-Fi feature to iPhones and iPads. As spotted by Creative Strategies analyst Max Weinbach, sign-in details for captive Wi-Fi networks are now synced across iPhones and iPads running iOS 26 and iPadOS 26. For example, while Weinbach was staying at a Hilton hotel, his iPhone prompted him to fill in Wi-Fi details from his iPad that was already...
maxresdefault

Five Features Coming to AirPods Pro 3

Friday June 27, 2025 10:52 am PDT by
Apple hasn't updated the AirPods Pro since 2022, and the earbuds are due for a refresh. We're counting on a new model this year, and we've seen several hints of new AirPods tucked away in Apple's code. Rumors suggest that Apple has some exciting new features planned that will make it worthwhile to upgrade to the latest model. Subscribe to the MacRumors YouTube channel for more videos. Heal...
replay all time playlist apple music

Apple Music Debuts All-New Personalized Playlist

Monday June 30, 2025 7:16 am PDT by
As part of its 10-year celebrations of Apple Music, Apple today released an all-new personalized playlist that collates your entire listening history. The playlist, called "Replay All Time," expands on Apple Music's existing Replay features. Previously, users could only see their top songs for each individual calendar year that they've been subscribed to Apple Music, but now, Replay All...