Apple spending $500 Million on LG Displays for the next 5 years

The AP today revealed that Apple and LG have come to a big agreement over the next five years for display technology. The agreement spells out that the displays won’t just be for monitors but also for iPhones and iPods.  Also there isn’t anything in the way of exclusivity in the press release but perhaps Apple would like to have first dibs on LG’s displays.

The release…

SEOUL, South Korea (AP) — LG Display Co. has reached a long-term deal with Apple Inc. to supply flat panels to the iconic maker of computers, music players and smart phones. The contract between the two companies is for five years and calls for LG to receive an advance payment of $500 million sometime this month, the South Korean company said in a regulatory filing Monday. Seoul-based LG Display and Apple, headquartered in Cupertino, California, planned to decide later on details such as the number of panels LG will provide, LG said. LG Display declined to provide further details. Shares in LG Display fell 0.8 percent to close at 23,550 won ($17.33).

LG is also working on 3D displays:

Cutting-edge High Tech but Affordable Price
– No additional cost for 3D contents conversion plug-in
– Only Invest initial affordable cost for getting tremendous benefits from 3D
Apply 3D to your dream
– Various applications & usages without glasses
Feel free to make 3D contents
– Various Professional 3D Contents Conversion Softwares
– True3D Player(3D Contents Player)
– True3D Still Image Maker(Still Image Conversion S/W)
– True3D 3DS Max Plug-in(3DS Max Rendering S/W)
– True3D Mixed Reality(2D, 3D Compounding S/W)
Easiness of 3D Contents Conversion
– Software Easiness
– Stable & Fast
– Simple & intuitive interface
– Readiness of converting function for various 3D authoring software with igs file
Hardware Easiness
– Simple usage(display & filter exchange)
– Simple 3D photography usage

Dense view number
– The world best 25 views make sure comfort viewing

Microsoft also announced a screen manufacturing agreement today.  Theirs was a much smaller agreement with Israeli touch screen manufacturing firm N-Trig

LG and Apple compete (obviously) in the LCD display business and also in smartphone handset (LG Voyager, Prada etc.).  This compete/cooperate model isn’t uncommon in the electronics industries where conglomerates that cross industries are common.

It may also make sense that Apple makes large investing agreements while the US dollar is still strong.

http://www.reuters.com/resources/flash/include_video.swf?edition=US&videoId=96785