Apple Expected to Spend $9B on iPhone, iPad Displays in 2012

News
By Douglas Perry
published

Quickly increasing iPad and iPhone sales will cause Apple's spending on gadget displays to almost double this year.

IHS estimates that Apple will shell out about $9.0 billion for iPhone, iPod and iPad displays in 2012, up from $4.7 billion in 2011. According to the market research firm, a 69 percent shipment increase for the company's smartphones and tablets as well as more expensive technologies will drive the significantly higher expense.

“Apple in 2011 had already established itself as a major purchaser of displays for smart phones and media tablets,” said Vinita Jakhanwal, senior manager for small & medium displays at IHS. “However, combined with continuing strong sales growth of the iPhone, the arrival of the new-model iPad will put Apple’s display-purchasing growth into overdrive in 2012. Along with the high volumes of expected sales, the use of more advanced technology will boost revenue for the iPad screens, increasing Apple’s display expenditures dramatically.”

The new 264 ppi, 2048x1536 pixel QXGA display in the new iPad is believed to carry a substantial price premium over the previous 130 ppi, 1024x768 pixel XGA screen. However, Apple may receive steep discounts as it has invested in display makers LG, Sharp and Toshiba Mobile Display.

IHS said that more than 80 percent of the money Apple spent for iPhone displays were attributed to the 326 ppi, 960x540 QHD pixel display that is used for the iPhone 4/S. Still, the market research firm said that Apple has huge leverage in the market and was able to negotiate price reductions to keep costs under control. IHS also speculated that a new 4-inch screen iPhone will keep a pixel density of about 320 ppi, but jump to a 1024 by 768 pixel format.

Douglas Perry
31 Comments Comment from the forums
  • eklerus
    How can all companies offer services for all budgets and this one doesn't ?
    Reply
  • Vladislaus
    IHS also speculated that a new 4-inch screen iPhone will keep a pixel density of about 320 ppi, but jump to a 1024 by 768 pixel format.Using a 4:3 format would mean that the iPhone would be a lot wider, so I have my doubt that Apple will change the aspect ratio of the screen.
    Reply
  • They do offer budgets, 16g,32g,64g. Those are priced at different amounts. Buy which one is in your budget.
    Reply
  • halcyon
    VladislausIHS also speculated that a new 4-inch screen iPhone will keep a pixel density of about 320 ppi, but jump to a 1024 by 768 pixel format.Using a 4:3 format would mean that the iPhone would be a lot wider, so I have my doubt that Apple will change the aspect ratio of the screen.
    Perhaps 1366x768?
    Reply
  • Wow, thats a lot of money. They will probably exceed that much in my opinion because many people who bought iPad 1's didn't buy a two. It will be time for an upgrade. I mean look at this, people are in line already! http://detectapple.com/people-in-line-for-new-ipad-already/
    Reply
  • rantoc
    And zero to the workers creating them and donations in order to improve life of other.. nah stockpile the profit in a vault instead!
    Reply
  • alidan
    will this mean good news for the consumer?

    apple invests in insane screens, we see a trickle down to normal pc monitors?

    i mean an ipad 3 costs 500$ right? if we cut all the extra crap out of it, what does just the screen cost...

    i mean i have a 1920x1200 currently, would love a 2560x1600, but cost... but if that 10 inch screen gets made in bulk... will it effect the process to make computer monitors too, so we can be offered 2560x1600 at a 500$ or less price point?
    Reply
  • dragonsqrrl
    "IHS said that more than 80 percent of the money Apple spent for iPhone displays were attributed to the 326 ppi, 960x540 QHD pixel display that is used for the iPhone 4/S"

    The display on the the iPhone 4/4S is 960x640.
    Reply
  • halcyon
    soldier37Apple has finally fallen behind Android and I just traded in my Iphone 4 last week for a galaxy note. Waiting for the Iphone 5 has taken way too long so Ive moved on. Even when the 5 does come out this Fall it wont be able to compete against the Galaxy S3 and those specs it supposedly will have. It was nice for a while but now I dont miss it.
    Don't be too sure. A lot of people just don't care about the specs and focus more on the entire package...build quality, ease of use, ecosystem , etc. So while the Galaxy S3 will undoubtedly be a spec monster how will the surrounding ecosystem be? Will it still be encased in plastic? Will it be just as easy or easier to sync your music library and playlists for the average consumer?

    I really like my Razr Maxx but I won't say it's better than an iPhone 4...it's just different.
    Reply
  • JOSHSKORN
    $9 billion on screen improvements. How much on improving workers conditions? 3 cents?
    Reply