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Apple Inc. (AAPL) Could Make a Major Supply Chain Change Soon

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We spend a lot of time covering the Apple Inc. (NASDAQ:AAPL) supply chain, talking about what the company needs to do to ensure success moving forward. At this point, we know one thing to be true: Cupertino does not have any problem making supply chain changes if it feels it is necessary (check out this piece for more).

Apple Inc. (AAPL)Korea IT News broke an interesting story this morning: Apple to Choose Samsung Display Over AUO as LCD Supplier for iPad Mini 2

The Apple Inc. (NASDAQ:AAPL) iPad mini 2 is something consumers all over the world are looking forward to. But before Cupertino is able to push this device to market, the company has to get its supply chain in order.

There are many reasons why this news is somewhat of a surprise. Most notably, Apple has turned to Samsung once again for assistance. Despite the fact that these two companies continue to clash in courtroom battles, mostly related to patents, they always seem to find time to do business together.

Here is more from Korea IT News, explaining exactly what is going on:

“Apple dropped AUO, a Taiwanese display supplier, from its list of suppliers for IPad mini 2. AUO had supplied LCD for iPad mini along with LG Display and Sharp, but could not secure orders from Apple since it had failed to develop an high penetration LCD for iPad Mini 2.”

If you believe that information to be true, it is easy to see why Apple Inc. (NASDAQ:AAPL) was forced to make a change. It shows that AUO was not able to met the needs of Cupertino for its upcoming mini tablet.

The article goes on to add even more information:

“Also, the improved relationship between Samsung Display and Apple seems another factor for AOU being dropped. “Samsung Display is known to have developed an LCD sample for iPad mini 2. The company may be able to secure more order than Sharp did, if it can stabilize production yields”, said a person from the LCD industry.”

This is an interesting development that is worth keeping an eye on over the next few months. The final decision of Apple Inc. (NASDAQ:AAPL) will go a long way in shaping the future.

If nothing else, it is interesting to see Apple and Samsung doing business together once again.

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