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January 12, 2009 9:35 AM PST

Apple signs deal with LG for display supply

by Tom Krazit

LG has cut a deal with Apple to supply displays for products like the MacBook Air.

(Credit: Apple)

Apple has signed a five-year deal with LG Electronics to secure a supply of LCD displays.

Reuters reports that LG has received $500 million as a down payment on the deal, which LG disclosed in a filing to the Korea Exchange. The two companies are not exactly strangers; one analyst in South Korea estimated that LG already provides around 70 percent of Apple's flat-panel displays.

The deal appears to be somewhat similar to long-term supply deals that Apple has cut with flash-memory companies like Samsung, Micron, and Toshiba. Apple agreed to pay $1.25 billion in 2005 to five flash-memory companies in order to make sure it had enough chips at the right prices as its iPod division grew.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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by myles taylor January 12, 2009 9:53 AM PST
I wonder if this means that Apple displays will drop in price. Is LG cheaper than the current supplier?
Reply to this comment
by Grifter02 January 12, 2009 10:05 AM PST
Hahaha! Apple lower the price? They'd sooner raise the price if it cost less to make it!
by Mr. Dee January 12, 2009 10:06 AM PST
Keep dreaming, they probably get the displays really cheap and overcharge their customers.
by  Brian January 12, 2009 11:54 AM PST
I agree with Grifter02 and Mr. Dee in that Apple does not offer discounts.

Only Apple employees get hefty discounts.

If you want a discount, ask an Apple employee to buy it for you (they can do that IF they want to).
by trd1282 January 12, 2009 11:10 PM PST
My guess is that they just needed a new deal, probably doesn't involve pricing.

Mr. Dee, you must have majored in economics to figure that one out.
by robertbasil January 12, 2009 10:35 AM PST
myles: "I wonder if this means that Apple displays will drop in price. Is LG cheaper than the current supplier?"

from the story: "one analyst in South Korea estimated that LG already provides around 70 percent of Apple's flat-panel displays."

Myles, read before you post next time.
Reply to this comment
by mrgoodall January 12, 2009 10:46 AM PST
aww man, arent you asking a bit much?? I mean its an Apple article, no reads Apple articles, they just start trolling, Apple sux, overpriced, jobs is dead, stock is low, ipod sucks, et al. So yeah, its par for the course.
by myles taylor January 13, 2009 11:15 AM PST
Sorry, you're right. I must admit I read it fairly quickly and just skimmed it really.

mrgoodall, I wouldn't call me a troll. Have you actually read my comments?
by  Brian January 12, 2009 11:51 AM PST
I like LG very much -- they have had a major presence in Times Square for years and my phone is an LG EnV2.

The displays on my phone are glossy finish, yet I have no issues with glare.

My black Macbook also has the similar glossy display.
Reply to this comment
by rshah29 January 12, 2009 1:20 PM PST
LG makes wonder TVs and monitors. Prior to this article, I didn't know they provided screens for other Apple products. No wonder the quality of Apple's monitors are so high.

This is great news of LG and consumers in the market for their products. The partnership with Apple just gave LG more credibility.
Reply to this comment
by random truth January 12, 2009 6:32 PM PST
Im still waiting for a reflective oled multi-touch screen that you can use with gloves on...
(yes I know it will never happen)
Reply to this comment
by codynews January 12, 2009 7:14 PM PST
Why can't you use multi-touch with gloves (not saying you can, just never knew you couldn't) ?

And why is that an issue for you (again, just curious) ?
by random truth January 12, 2009 8:47 PM PST
I want an oled screen for the significantly lower power consumption which equals better batterylife. However oled displays are not reflective so it is hard to see in daylight. Then I want to be able to use say an iphone with gloves on.
by rapier1 January 12, 2009 9:12 PM PST
touch displays aren't actually pressure sensitive. The work by measuring the change in resistance (or is it capacitance?) across the area thats being touching the screen. With gloves this won't register properly.
by random truth January 12, 2009 11:29 PM PST
@ rapier
That is how new touchscreens work... The old ones had a grid of strips of clear metal that when pressed was able to coordinate where you were pushing. These work with gloves and styluses...
I guess someone could use this concept
http://www.youtube.com/watch?v=7kzIHMpOt20
Their resistance of the leds change when light is reflected back at them from your finger. This is measured and their you could get a touch screen that would work with gloves on...
by The-real-steve-jobs January 13, 2009 5:53 AM PST
You can use a multi-touch iPod with Gloves. I got a pair of gloves for christmas from 180s. The index finger has a node in the tip to complete the connection.
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