Apple linked to Sharp and Toshiba display plans

Apple is reportedly planning to invest heavily in new facilities to produce mobile touch-screen displays.

The company has been linked in recent days to new facilities being built by Sharp and Toshiba.

Japanese newspaper Nikkei reported earlier this week that the company would be contributing to efforts by Toshiba to expand production of LCD displays for use in smartphones.

The report suggested that the factory could open in late 2011 and could eventually boost manufacturing output by more than 8.5 million units.

Following on the heels of the Toshiba report, both Nikkei and Reuters are reporting that Apple is in talks with Sharp on a deal similar to the reported Toshiba deal.

The agreement would see Apple helping to cover the cost of a $1.2bn manufacturing plant whose primary objective would be to produce touch screens for the Apple iPhone.

The Sharp plant would reportedly open its doors in late 2012 and would expand on a partnership that has already seen Sharp supplying displays for Apple's iPod Touch media player line.

The iPhone has become one of Apple's most lucrative products in recent years. In its latest quarterly report, the company said that more than 14 million units had been shipped, up 91 per cent from the same period last year.

Display screens are also believed to be a major portion of the iPhone's manufacturing costs. A recent teardown from analyst firm iSuppli priced the Retina display unit at $28.50, accounting for roughly 15 per cent of the total manufacturing cost of each iPhone.