Apple is poised to become Samsung"s largest customer if a $7.8 billion deal to purchase parts for its line of iPhones and iPads is reached, says The Korean Economic Daily.
Under the terms of the agreement, Apple will purchase LCD panels, mobile processors, and NAND flash memory chips.
The company could also supply Apple with Super PLS displays for a future iPad, although (we think) a second-generation tablet is already in production, this means that Samsung would have to wait for a third generation model. If rumours are to be believed, the iPad 2 will feature a H-IPS display manufactured by LG.
Currently Super PLS have 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.
Perhaps the most unique part of this news is the fact that the two companies will be both competing and working together in the market place. Samsung recently enjoyed a surge in sales, and is currently the fourth largest supplier of mobile phones, while Apple is second.
This isn"t the first time the rivals have done business together - the Korean giant has had previous dealings with the Silicon Valley company – providing Apple with iOS devices, including displays, flash memory, and even Apple"s A4 chip.
Apple recently made 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.