Apple Inc. Ditched Samsung For iPhone 6 Displays [REPORT]

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Apple Inc. (NASDAQ:AAPL) has joined hands with Innolux Corp (TPE:3481) as its third display panel supplier for the upcoming 4.7-inch iPhone 6. According to Taiwanese newspaper UDN, the iPhone maker was in talks with Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930), Japan’s Sharp Corporation (ADR) (OTCMKTS:SHCAY) (TYO:6753) and Innolux. But Apple ditched the South Korean and Japanese companies.

Apple rejects Samsung and Sharp

Apple Inc. (NASDAQ:AAPL) has reportedly already picked LG Display and Japan Display Corporation for the 4.7-inch iPhone 6 display. But it needed a third panel manufacturer to meet the anticipated high demand for the big screen iPhone 6. And now Taiwan-based Innolux, one of the world’s largest TFT-LCD makers, has become its third partner.

Apple Inc. (NASDAQ:AAPL) reportedly rejected Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) because it is a direct rival, both in the marketplace as well as the court room. Samsung still supplies some of the critical components to the Cupertino-based company, including the A-series processors. Sharp Corporation (ADR) (OTCMKTS:SHCAY) (TYO:6753) was dismissed due to quality issues during preliminary tests. It’s the second time Apple has ditched Sharp this year. In March, the iPhone maker reportedly ousted the Japanese company from the iPad Mini supply chain.

Apple and Innolux have a long history of working together

Innolux Corp (TPE:3481) and Apple Inc. (NASDAQ:AAPL) have previously worked together on display technology. The Taiwanese was reportedly supplying panels for the iPad 2 and iPad 3. Analysts anticipate that demand for the 4.7-inch iPhone 6 would be at least 20% higher than the iPhone 5S. Cantor Fitzgerald analyst Brian White calls the 4.7-inch iPhone 6 launch “a special one” for the tech giant.

The iPhone 6 is likely to be announced in September, and will be available in two screen sizes: 4.7- and 5.5-inch. The next-gen iPhone is rumored to sport sapphire glass display produced by GT Advanced Technologies Inc (NASDAQ:GTAT). Though Apple has finalized the three display panel makers for the 4.7-inch version, there is no word on who the company will turn to for the 5.5-inch phablet panels.

Apple Inc. (NASDAQ:AAPL) shares inched up 1.48% to $606.38 at 2:15 PM EDT on Monday.

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