Apple's investment in a manufacturing facility to build Retina Displays is a wise move. Rival HTC struggled earlier this year with display panel shortages that affected sales of its flagship Android handset models. Both the Verizon Wireless HTC Incredible and the Sprint EVO 4G were out of stock for over a month due to LCD shortages. The manufacturer reportedly slowed production on the Nexus One and the HTC Desire as AMOLED shortages forced them to shift to a Super LCD display. By investing in a dedicated manufacturing facility, Apple would be able to secure an ample supply of display panels for its popular mobile devices. If shortages hit the overall LCD market, the effect on Apple will be minimal.
Hopefully, this rumor pans out as it would put Apple in a good position to meet the ever increasing demand for the iPhone. While Apple has not commented, Toshiba has denied the report, claiming it is has not made a commitment to produce LCD panels for Apple.