RUMOR: Apple invested $3.9 billion in LCD displays

“During Apple’s Q1 2011 Financial Results conference call, Apple revealed that they had made long term commitments with three companies in the amount of $3.9 billion,” Arnold Kim reports for MacRumors. “When questioned about the exact component, Tim Cook declined to answer citing competitive reasons.”

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Kim reports, “During the opening statements, however, Peter Oppenheimer revealed that the agreements began in the September and December quarters: ‘During the September and December quarters, we executed long-term supply agreements with three vendors through which we expect to spend a total of approximately $3.9 billion in inventory component prepayment and capital expenditures over a two-year period. We made approximately $650 million in payments under these agreements in the December quarter, and anticipate making $1.05 billion in payments in the March quarter.'”

Kim reports, “Looking back at the previous quarters, it seems to us that Apple is likely securing LCD supplies from various vendors for the years to come.”

Much more in the full article here.

[Thanks to MacDailyNews Reader “Jax44” for the heads up.]

MacDailyNews Take: Whatever Apple is doing, expect it to be about creating/securing something that competitors will not be able to match.