A new supply chain rumor has surfaced today claiming that AU Optronics will reportedly sign a new agreement with Apple. AU Optronics will be contracted to supply Apple with display panels for both current and upcoming iPhones in order to secure shipments. The report noted that other panel makers' yields have been fluctuating.

AUO is expected to supply 4-inch panels and is currently prepping 4.7- and 5.5-inch LTPS In-Cell displays at its L3A and 3B fabs, the report added.

The timing of when the contract will begin is a little cloudy. While one report claims that the orders will be for current and future iPhone displays, other reports from Taiwan-based Apple Daily and UDN claim that AUO's role in Apple's supply chain may only begin in 2016.

Whether Apple is considering AUO as a backup supplier for a possible revised or new emerging market iPhone model is unknown at this time.

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