Apple choose Toshiba to supply iPhone displays

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We told you yesterday that Apple had added to its suppliers for the iPad 2 screen parts. Today it seems the company has been busy organizing suppliers for other key components for its iPhone, as reports are suggesting that Apple have chosen Toshiba to supply iPhone displays.

An article over at Reuters is reporting that Apple will be investing in its production of small displays, and have dropped Sharp for that work in the process. Sharp saw its shares drop as much as 2.7 percent following the rumors of the deal, but later released a statement saying that there was no truth in the rumor.

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The original report came from Nikkan Kogyo who declined to comment after Sharp released their statement on the matter. The report also said that Apple had been in talks with both companies about, investing 100 billion yen a piece in production lines for small LCD screens. These displays are thought to be for a future version of the iPhone.

It is thought Apple has been looking to spread the risk of supplies for components of their devices following the recent natural disaster in Japan.