MF Global FXA Securities wrote in their research note that Apple might invest $1 billion in Sharp’s LCD plant to secure supply of ultra high resolution screens for next generation iPhone and iPad.

"We think it is highly possible that Apple will make an investment in Sharp's Kameyama plant to the tune of around $1 billion in order to secure stable supply of screens for iPhones and iPads," analyst David Rubenstein said in the note.

Just two days back it was reported that Apple is delaying iPad 3 introduction till 2012 because of yield problems with 9.7-inch LCD panel featuring 2,048 x 1,536 resolution. Sharp is one of the few companies that make ultra high resolution IPS LCD panels required by Apple for next generation iPad and a deal with Sharp will definitely help both the companies. [Via Reuters]