Apple will use Toshiba as its sole Japanese supplier of LCDs for the iPhone, it has been claimed.
A report from Japan's Nikkan Kogyo Shimbun newspaper picked up by the Wall Street Journal said that Apple had dropped plans to invest in production facilities with Sharp.
Another Japanese newspaper, Nikkei, reported last December that Apple was planning to create new plants with both Toshiba and Sharp. Toshiba had denied these reports at the time.
Meanwhile, Sharp has this week denied that content of the Nikkan Kogyo Shimbun report was true, saying it "contradicts the facts".
Delays in the supply of LCDs were reported to have affected the launch timings of both the iPad and iPad 2.