Apple Spreads iPad Wealth Across Supply Chain, Especially In Korea
LG supplies display and touchscreen interface components for the iPad 2 that cost around $127. Based on our estimate of 20 million iPad 2 units sold in 2011, we arrive at the estimate of $2.5 billion in revenues for LG Display from the iPad 2 in 2011. We estimate that Samsung will earn around $1.6 billion from the iPad 2 in 2011. Although LG and Samsung find it difficult to compete directly against Apple, they stand to gain the most from iPad 2's success.
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