14 DAY TRIAL // Samsung is currently the company building the OLED screens used on new-generation iPhones, but as part of Apple’s plans to reduce reliance on its rival, the company will soon begin using panels from LG Display too.
This isn’t a new plan, as Apple and LG started working on OLED production plans in 2017, but according to a new report, the sixth-generation flexible screens have recently passed all certification tests and can be used on iPhones.
Production will soon begin at the E6 plan in Korea, and LG will be in charge of supplying OLED screens for at least one iPhone model.
No specifics are available at this point, but it’s believed that the iPhone XS Max will be the one using LG screens, while the iPhone XS would continue to use Samsung displays.
Samsung displays making iPhones more expensive
Interestingly, analyst estimates point to rather modest sales of the iPhone XS, with the Max version and the more affordable iPhone XR likely to spearhead shipments of this year’s generation.
The Samsung display used on the original iPhone X was one of the most expensive components of the device, and by adding LG to the list of screen suppliers, Apple can reduce production costs significantly. However, this doesn’t guarantee that iPhone pricing could drop too, as the 2018 lineup has reached new records, with the 512GB iPhone XS Max available for $1,449 in the United States.
If Apple indeed begins using LG displays on the iPhone XS lineup, Samsung could record a small revenue decline this year, as Apple is one of the biggest and most important clients given the volumes of iPhone screens it orders.
At this point, it’s not known when Apple could begin equipping its new-generation iPhones with LG screens, but if the plan goes forward as intended, it should all come into effect in early 2019.