LG Becomes OLED Display Supplier for Apple

When it comes to OLED panels, Samsung was the only supplier for Apple. Nonetheless, it appears that this is about to change, as LG Display might soon become the second supplier. Organic light-emitting diode panels are essential for iPhones. With a new alternative supplier, Apple will be able to reduce the costs and receive OLED panels faster.

Samsung was able to charge higher prices for the panels as it was the only supplier. This was not a good move for Apple as Samsung is also the main rival for the company.

The LG deal

“Initially, Apple will get between 3 million and 5 million OLED displays from LG Display. LG plans to increase its production capacity. Apple is attempting to release new iPhones with enhanced features next year and it is eyeing developing foldable iPhones, which will come several years later,” revealed an insider.

This deal is an important one, as it is worth millions of dollars. “Apple wants to expand the partnership with LG into OLEDs from LCDs. However, the key concern is LG has smaller production capacity for OLEDs used in portable gadgets compared to Samsung Display. The quality of the V30 display isn’t as good as Samsung’s OLED display in its Galaxy lineup,” revealed an executive.

Meanwhile, Samsung had a deal to produce 110 million OLED displays for the iPhone X. Getting a second supplier for the screens is very important for Apple as it will allow it to “reduce its reliance on Samsung”. At the moment LG is trying its best to keep up with Apple’s demands. “LG wants a bigger cut than what the company has at present as LG aims to spend more to boost its OLED production capacity with continued financial assistance from Apple,” a fund manager explained.

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