NEW YORK (TheStreet) -- Shares of Apple (AAPL) - Get Report were increasing in pre-market trading on Friday as the Cupertino, CA-based company is in talks with Japanese electronics company Sharp (SHCAY) to create organic LED screens, Bloomberg reports, citing sources.
The screens would be used on Apple's next generation iPhones as the technology company seeks to increase the number of suppliers for OLED screens.
OLED screens use technology that creates more colorful, detailed images and preserves battery life longer.
Sharp said today that it would invest about $566 million in developing OLED production facilities, with the plan of starting output by June 2018. The funds will be used for equipment in Sharp's factories and to deliver sample products to customers, Bloomberg noted.
Any OLED supply agreements between Apple and Sharp would depend on Sharp's capacity, sources said, according to Bloomberg.
Shares of Sharp closed flat on Thursday.
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Separately, TheStreet Ratings team rates Apple as a Buy with a ratings score of B+.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in stock price during the past year and notable return on equity.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AAPL