14 DAY TRIAL // Apple’s 2018 iPhone lineup is likely to stick with OLED panels manufactured by Samsung, as Cupertino’s backup solution, LG, doesn’t yet have the production capacity to meet the required targets.
A report from the WSJ and citing sources with knowledge of the matter indicates that LG has a hard time aligning with Apple’s requirements, and “manufacturing problems have caused it to fall behind the schedule that many suppliers follow before beginning mass production for iPhones.”
In the case of the new iPhone generation, production is due to kick off in July, but LG’s struggles are likely to make it the second supplier, with Samsung to remain the key manufacturer of OLED panels for Apple’s devices.
It’s being reported that Apple specifically requested LG to start a third round of prototype production for the 2018 iPhone, as the company is believed to be working hard ensuring that manufacturing issues won’t hold back its new-generation devices. Last year, the iPhone X was delayed due to production challenges with the Face ID facial recognition modules.
The price challenge
But with LG becoming the second source of OLED displays and Samsung remaining the top partner in this regard, Apple has another problem.
One of the priorities for the 2018 iPhone lineup was to make devices available at lower prices, and the addition of LG to the list of display suppliers was supposed to play a key role in this regard. Samsung’s displays for the iPhone X are the most expensive components on the device, with an estimated price of nearly $100 per unit.
LG, however, would have helped Apple not only obtain a lower price from Samsung given the competition, but also manufacture OLED panels cheaper, in the end leading to smaller prices for iPhones.
Apple is projected to launch three different iPhone models this year, two of which would feature OLED screens. A third model with LCD is also in the works, and this time the price tag could go as low as $500.