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.

Top Rated Comments

nagromme Avatar
88 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
88 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
88 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
88 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
88 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
88 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)

Top Stories

siir apple event april 20

Siri Reveals Apple Event Planned for Tuesday, April 20

Tuesday April 13, 2021 12:04 am PDT by
Siri has apparently prematurely revealed that Apple plans to hold an event on Tuesday, April 20, where the company is expected to reveal brand new iPad Pro models and possibly its long-awaited AirTags trackers. Subscribe to the MacRumors YouTube channel for more videos. Upon being asked "When is the next Apple Event," Siri is currently responding with, "The special event is on Tuesday, April...
apple event spring loaded

Apple's 'Spring Loaded' Event Officially Announced for Tuesday, April 20

Tuesday April 13, 2021 9:04 am PDT by
Following an overnight leak by Siri, Apple today officially announced that it will be holding a special "Spring Loaded" event on Tuesday, April 20 at 10:00 a.m. Pacific Time at the Steve Jobs Theater on the Apple Park campus in Cupertino, California. As with all of Apple's 2020 events, the April 2021 event will be a digital-only gathering with no members of the media invited to attend in...
apple event hashflag

Twitter Hashflag for April 20 Apple Event Goes Live

Tuesday April 13, 2021 2:21 pm PDT by
Following the overnight Siri leak and subsequent announcement that Apple will hold a media event on Tuesday, April 20, a new Twitter hashflag has appeared to help provide visibility for the event on the platform. For the last several recent events, Apple has utilized hashflags, which are little icons next to hashtags on Twitter, as a way to market its events. The company first started the...
iphone12cameras

Kuo: 2022 iPhones to Feature 48-Megapixel Camera, 8K Video, and 6.1 and 6.7" Sizes With No 5.4" Mini Option

Tuesday April 13, 2021 10:45 pm PDT by
The upcoming 2022 iPhone lineup will feature two 6.1-inch devices and two 6.7-inch devices, with no mini-sized 5.4-inch iPhone, well-respected Apple analyst Ming-Chi Kuo said in a note to investors that was seen by MacRumors. Two of the iPhones will be high-end models and two of the iPhones will be lower-end models, similar to the current iPhone 12 lineup. Apple introduced the 5.4-inch...
macos catalina serial number

Apple Preparing Rollout of New Randomized Product Serial Numbers Ahead of 'Spring Loaded' Event

Wednesday April 14, 2021 2:08 am PDT by
Apple is advising its authorized premium resellers and dealers to prepare for new products with 10 and 12 digital serial numbers, days ahead of when it's expected to reveal a slew of new products. MacRumors previously reported that Apple plans to switch to randomized serial numbers for future products starting in early 2021. The company now seems to be preparing for that roll-out, telling...
duanrui iphone13 notch samples

More Leaked iPhone 13 Samples Show Smaller Notch, Repositioned Earpiece and Front Camera

Wednesday April 14, 2021 1:06 am PDT by
Leaker known as "DuanRui" has today shared an image of two iPhone 13 "film samples," which show the same rumored smaller notch design coming to the iPhone 13 series that we've seen from other sources. In past tweets, DuanRui has accurately leaked the correct names of the iPhone 12 models and an iPad Air 4 manual revealing its new design, so there's good reason to think this leak is credible, ...
Google maps feaure green

Google Maps App for iOS Finally Updated After Four Months

Monday April 12, 2021 10:03 am PDT by
Following the completed rollout of App Privacy labels for its App Store apps, Google today updated the Google Maps app for the first time in four months. Apple in December began requiring all new app submissions and app updates to include App Privacy labels, detailing the data that is collected by the app so consumers know what they're sharing. Google didn't begin implementing App Privacy ...
iPad Pro Mini LED

Mini-LED iPad Pro Expected at Apple Event on April 20 as Production Ramps Up

Tuesday April 13, 2021 9:53 am PDT by
Apple today announced that it will be hosting a virtual event on Tuesday, April 20 at 10 a.m. Pacific Time, and one of the new products expected to be unveiled at the event is a new iPad Pro with a Mini-LED display. In a brief snippet shared with paid subscribers, Taiwanese supply chain news website DigiTimes today reported that Apple supplier Ennostar has substantially improved its yield...
apple event particularly innovative article

Gurman: Apple's 'Spring Loaded' Event Won't Feature Anything 'Particularly Innovative'

Thursday April 15, 2021 1:30 am PDT by
Bloomberg's highly-respected Mark Gurman says that he expects nothing "particularly innovative" or "extraordinary" to launch at Apple's "Spring Loaded" event next week, Tuesday, April 20. Gurman made the remarks during an interview for Bloomberg Technology, in which he reaffirmed that Apple will launch a new 11-inch and 12.9-inch iPad Pro, with the higher-end model featuring a brand new...
spotify car thing 1

Spotify Announces the 'Car Thing' as its First Hardware Device

Tuesday April 13, 2021 7:03 am PDT by
Spotify has today announced its first hardware device, the "Car Thing," which is an in-car dash-mounted music and podcast player (via TechCrunch). Spotify is looking to provide a product for customers who want a "more seamless" and personalized in-car listening experience, especially in the large number of cars that do not support modern in-car infotainment systems. The Car Thing is aimed ...