Apple's spending on display panels will increase in 2012 to keep up with iPhone and iPad shipment growth

According to IHS iSuppli's research report, as shipments of iPhone and iPad products are expected to increase significantly this year, Apple may spend $9 billion on the display panels of these two products in 2012 to further ensure its presence in the tablet and mobile phone markets. leading position.

The basis for the budget for Apple’s display this year is that it expects iPhone and iPad shipments to be 150 million and 75 million, respectively, as shown in Figure 5. This part of the budget for last year was about 4.7 billion U.S. dollars, and iPhone and iPad shipments were 93 million and 4 million, respectively. Apple's display spending in 2010 was less, about 2.1 billion US dollars, iPhone and iPad shipments were 47 million and 15 million, but this is also because it is the first year to launch the current best-selling telemedia tablet. Of course, the actual number of monitors Apple has purchased for its iPhone and iPad products is certainly much higher than the shipment of these products.



Overall, Apple accounted for 6% of the overall mobile phone market in 2011, accounting for a higher share of the smart phone market, 18%, due to its iPhone in the fourth quarter of last year, sales increased significantly. In the field of media tablets, Apple is the undisputed leader. As of the end of 2011, the market share was as high as 61%, and many eye-catching competitors were unable to take away its market share.

The iPhone product line's display The current Apple iPhone product line includes 3GS, 4 and 4S. The 3GS, as well as the currently discontinued 3G and the first iPhone launched in 2007, use a 3.5-inch lower resolution HVGA (480x320) display. The number of pixels per inch of 163.3G and 3GS is the main product driving the growth of shipments until 2010. Mid-year, when Apple introduced a high-resolution retina QHD (960x540) display, 326 pixels per inch, for the iPhone 4 and later 4S.

In 2011, more than 80 percent of iPhone display spending was spent on high-resolution retina displays, up from 62 percent in the previous year. But even if the retina display is more expensive than the low-resolution display used by earlier iPhone models, Apple can also use its huge advantage in ordering and its close relationship with display manufacturers to fight for lower prices and help control the display spending.

The main suppliers of Apple's iPhone display include Samsung Display, LG Display, Toshiba Mobile Display and Sharp. Toshiba and Sharp are considering expanding their capacity to increase the supply of higher resolution LTPS LCD panels. The two companies have now started producing the panels in their respective factories: Sharp is producing at a new sixth-generation plant, and Toshiba Mobile Displays is producing at a new 5.5-generation plant.

The new iPhone, which may be available in August, may have a 4.0-inch display with a resolution close to 320 pixels per inch supported by the XGA (1024x768) pixel format while continuing to use the same LTPS LCD technology as the current model.

The iPad's monitor Apple introduced its first iPads in March 2010 with a 9.7-inch XGA (1024x768 pixels) display and 130 pixels per inch. Apple uses liquid crystal panels with IPS/FFS technology, which provides a wide viewing angle and low power consumption without sacrificing the brightness and response time of handheld multimedia products.

Apple launched the iPad 2 immediately after the iPad, which is thinner and lighter than the first generation, but actually uses the same XGA display.

iPad suppliers include LG monitors, Samsung monitors and Taiwan's Chi Mei Electronics.

iPad 3 Monitors The upcoming iPad 3 may also come with a 9.7-inch display, but it may use the QXGA (2048x1536) pixel format with higher resolution and up to 260 pixels per inch. Apple announced that the iPad 3 will be launched in March.

In order to achieve higher resolution without increasing power consumption or sacrificing the performance of other displays such as panel brightness, Apple is said to consider using Sharp's new liquid crystal display technology, which uses IGZO TFTs.

Sharp is currently working hard to increase its IGZO TFT panel production at Japan's Kameyama 8's foundry, but the company has encountered some manufacturing issues that may affect the iPad 3's display supply and the cost of the iPad 3 monitor. In addition to Sharp, iPad 3 suppliers are believed to have Samsung monitors and LG displays.

The iPad 3's use of a higher-resolution display may mean that the iPad 3 will enjoy a higher premium. Similarly, suppliers are expected to provide discounts, especially since Apple has mostly invested in panel makers such as LG, Sharp and Toshiba mobile displays. By investing in these partners, Apple can not only control costs, but also ensure the supply and quality of these displays.

The author Vinita Jakhanwal is senior director of small and medium displays at IHS.

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