According to a report by CNET, display manufacturer Sharp is set to dedicate an entire LCD display manufacturing plant to Apple.
Sharp’s executives do not seem happy about the deal because they say that it “presents a high level of volatility risk.” In an interview with Japanese newspaper Nikkei, Norikazu Hoshi said:
“If you look at just this plant, it certainly presents a high level of volatility risk. But if we make LCD panels for smartphones in large quantities at the No. 2 plant, we can absorb the impact even when the No. 1 plant is not doing so well.”
The products produced by the Japanese company’s number one display plant will only be going to Apple and the plant will not be used for any other purpose.
The news reflects something about Apple’s suppliers. Having Apple as a customer results in big changes in production amounts from quarter to quarter because of the company’s constant change in requirements.
Sharp is Apple’s current display supplier for their iPad lineup, providing the display on products such as the iPad mini with Retina Display. It is expected that Sharp will continue to primarily produce iPad displays for Apple, even though the iPhone 6 is just around the corner.