Taiwanese touch panel maker TPK Holding Co, a key supplier for Apple’s iPhone, iPad and Apple Watch, announced Tuesday its decision to form a strategic alliance with longtime Chinese rival Shenzhen O-film Tech. The two companies will own shares of each other and provide integrated services as competitions in this sector intensify.

Apple is said to release a low-priced iPad and will partner with Chinese players to reduce production costs, boosting this new product’s competitive edge.

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