“Last year wasn’t exactly auspicious for German mobile-phone components maker Balda,” Jack Ewing and Arik Hesseldahl report for BusinessWeek. “The company issued two profit warnings, shed 70% of its 2,400 German workers, and ended the year with a loss equal to 13% of sales. So why would a heavy hitter such as Apple Inc. hand Balda a contract to make the touch screens that are the most important design element of the much-anticipated iPhone?”
“Although neither Balda nor Apple has actually said the German company is going to make the displays, it’s an open secret in the industry that Balda has the job. It’s the only company in the world currently capable of producing the millions of advanced small-format displays that Apple will need,” Ewing and Hesseldahl report.
“Further down the road, other touch-screen makers such as California-based Synaptics Inc. (SYNA) may be able to ramp up production enough to compete. Although Apple declined to comment for this story, the company dislikes depending on one supplier for important components and typically encourages rivals to join the fray,” Ewing and Hesseldahl report.
Full article here.
[Thanks to MacDailyNews Reader “LinuxGuy and Mac Prodigal Son” for the heads up.]
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