The iPhone 4 supply issues from this spring were rumoured to be so large because the process of creating iPhone 4 Retina displays took the same length of time that it took to create a prototype. As Apple’s suppliers streamlined their processes, the iPhone 4 shortages cleared up.

It’s clearly still on the minds of Apple’s top brass. According to reports on both the Reuters and Bloomberg websites, Apple and Toshiba will co-invest in a factory that will create LCD panels for Apple’s iPhone lineup.

A Japanese business daily called Nikkei, also the source of the rumour, put together an article that suggests Toshiba will contribute $1.19 billion towards creating the factory. Construction is expected to start in the second half of 2011. Nikkei also claims that Apple will be investing in the factory.

A Toshiba spokesman has since claimed that the reports were “untrue.”

The reports in Nikkei have been published without citing any sources, so the veracity of the rumor remains in question.

Article Via Bloomberg

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