14 DAY TRIAL // LG Display has started production of OLED panels for Apple’s iPhones, and the first batch will be ready ahead of the new generation’s debut in September, according to a new report.
The move would technically allow Apple to reduce reliance on Samsung, the sole supplier of organic light-emitting diode screens for the iPhone X and until today, the exclusive display partner for the Cupertino-based tech giant for the 2018 iPhone generation.
A report from Bloomberg reveals that LG Display will manufacture between 2 million and 4 million OLEDs, but output should be increased in the coming months. There’s a chance that LG would supply OLED screens for one of the two OLED iPhone models launching this year, while Samsung would remain the exclusive manufacturer of the other.
The OLED screen used on the iPhone X is said to be the most expensive part of the device, and Apple wasn’t able to negotiate the price given that Samsung was the only supplier.
LG to increase output for 2019 iPhones
But once LG reaches the required capacity, Apple plans not necessarily to give up on its contract with Samsung, but to obtain better prices for the new-generation iPhones.
“Securing a second supplier for OLED screens is crucial for Apple as it will allow the company to reduce its reliance on Samsung, which is currently the sole supplier. At the same time, it will help accelerate a broad adoption of OLED screens. More suppliers means more volume, and in turn, lower pricing,” Jerry Kang, a senior principal analyst at IHS Markit, was quoted as saying by the cited source.
While production of the OLED panels started at LG, it doesn’t necessarily mean that they’re ready to be used on iPhones. There are two different approvals that must be given before this happens, and the first of them is due in July. On the other hand, there are bigger chances for LG to play a more important role in the supplying of OLED screens for the 2019 iPhone generation.
Apple is projected to take the wraps off its new iPhone models in September, with two of them to use OLED screens, while a third and more affordable configuration would stick with LCD.