Japan Display is reportedly building a new factory to meet demand for iPhone components, and Apple is said be investing heavily in the project. If true, the factory will come online some time in 2016.
Rumored Japan Display factory could be funded by Apple for iPhone displays
Insider sources spilled the beans on the project, although Japan Display's official statement is, "We are reviewing various considerations to strengthen our business competitiveness, including new factories, but we haven't made any decision yet," according to the Wall Street Journal.
Apple currently buys iPhone displays from Japan Display and Sharp, investing in a new factory could mean the company is looking to scale back its parts orders from Sharp. It could also mean Apple expects iPhone demand to climb enough that it needs the extra production.
Since Apple doesn't talking about its supplier plans, and Japan Display isn't offering up any sort of confirmation, there isn't much to support the report. That said, increasing display production could help Apple avoid the low inventory issues it dealt with during the iPhone 6 and iPhone 6 Plus launch last fall.
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