Expected to buy $7.8 billion in parts

Apple will become Samsung's largest customer in 2011 if a new parts contract is signed, says the Korea Economic Daily. Under the terms of agreements, Apple is expected to pay $7.8 billion to Samsung for various parts including LCD panels, mobile processors, and NAND flash memory chips. These would be going into the likes of iPhones and iPads, reflecting Samsung's long-standing position as an Apple supplier.

The company could potentially be supplying Super PLS displays for a future iPad, but a second-generation tablet is already believed to be in production, which might mean that Super PLS will have to wait for a third-gen model. At present Super PLS has a maximum resolution of 1280x800, little better than the current iPad's 1024x768, but with the benefit of superior visibility. A common complaint about the first-gen iPad is washed-out images in sunlight conditions.

Apple recently established a $3.9 billion investment in an unspecified component type. Displays are thought to be the most likely candidate, as the company is increasingly dependent on multi-touch interfaces, as well as so-called Retina Display resolutions.

Samsung is in a unique position of both supplying Apple and competing with it. At Mobile World Congress this week the firm demonstrated a new smartphone, the Galaxy S II, and a new tablet, the Galaxy Tab 10.1.

By Electronista Staff