LG Display supplying panels for Apple's new iPad - source

A man walks out of the headquarters of LG Display in Seoul, October 20, 2011.

SEOUL (Reuters) - Flat screen maker LG Display Co Ltd (034220.KS) is supplying touch-screen panels for Apple Inc's (AAPL.O) new iPad, a source close to the matter said on Wednesday, helping its shares recover early losses.

Bloomberg reported earlier that Samsung Electronics Co Ltd (005930.KS) was the sole supplier for the new iPad after LG and Japan's Sharp Corp (6753.T) failed to meet the U.S. company's quality requirements, quoting an analyst from research firm iSuppli.

"LG is also in a panel supply deal with Samsung for the new iPad," the source said. The source was not authorized to speak to the media and declined to be identified.

Apple is expected to raise its spending on mobile displays by 91 percent this year to $9.0 billion to make iPhones and iPads, according to iSuppli, providing a big source of revenue to Asian suppliers.

LG Display, which has supplied panels for the previous iPad models along with Samsung, declined to comment.

Shares in LG Display, which vies for the title of the world's top flat-screen maker with rival South Korean firm Samsung, traded up 0.5 percent by 0545 GMT, after falling as much as 1.4 percent, against a 1.1 percent rise in the broader market .KS11.

Apple's latest iPad, which was launched last week and will hit store shelves on March 16, sports a crisper display, more powerful chip, better camera and faster network speed.

According to Credit Suisse, Apple will command 66 percent of the tablet market in 2012, thanks to its brand and hardware offering.

The global tablet user base reached 67 million in 2011 and Apple captured 58 percent of the market in the fourth quarter of the year, according to researcher Strategy Analytics.

(Reporting by Miyoung Kim; Editing by Richard Pullin)