Apple and Sharp to Get Thinner iPad 3.

WorldWide Tech & Science. Francisco De Jesús.

Peter Misek, at Jefferies & Co., wrote in a note to investors Tuesday: Apple is dealing Sharp into its iPad and iPhone business in a big way,  Misek believes Sharp began production of high resolution displays for the next iPad began two weeks ago, and that Sharp will help build displays for the next-generation iPhone 5.

To that end, Misek asserts the Cupertino, Calif.-based Mac maker has purchased between $500 million and $1 billion worth of manufacturing equipment for Sharp’s Gen 6 Kameyama manufacturing facility, which will be dedicated to building displays for iPads and iPhones:

Apple and Sharp together could have  a modified IGZO  (indium, gallium,  zinc) technology to achieve 330 dpi, which is sufficient for an HD display while not using IPS nor having to include dual-bar LED backlighting. 

This should lead to  several design advantages, namely the device can be thinner, battery life should be  longer, and the overall experience for users should be meaningfully improved.

The deal Misek describes between Apple and Sharp would account for a big chunk of Apple’s $8 billion capital budget for its current fiscal year. The $8 billion figure, revealed in Apple’s latest annual report, is a 73% increase from the $4.6 billion it spent during its 2011 fiscal year.

Analysts believe Apple buys and owns the key equipment used to build Apple products at its supplier’s facilities. So Apple’s capital spending budget hint the company thinks iPhone and iPad sales will continue booming.