Sharp and Toshiba are rumored to be in competition to for the rights to create iPhone displays. According to a report on Reuters, Apple’s looking to invest $1.21 billion into factories that would produce screens for upcoming devices like the iPhone 5.

Original reports indicated that Toshiba won the right to create the new iPhone screens; however, it sounds like Sharp is denying the story, and asking Nikkan Kogyo, the original publisher of the report, to remove the claims from their website.

It’s also being rumored that Apple’s looking to move some of their parts manufacturing out of Japan following the earthquake and tsunami. It’s believed that Apple’s trying to lower the risk of relying solely on one country or region for their parts, and instead diversify to other countries, including Brazil.

As with any major Apple rumor, the news has had an affect on the stocks of both Sharp and Toshiba — shares of Sharp have tumbled 2.7 percent.

Article Via Electronista