LG Display has begun production of OLED panels for Apple's iPhones and the first batch will be ready before the new generation debuts in September, according to a new report.
The move would allow Apple to reduce its reliance on Samsung, the sole supplier of OLED displays for the iPhone X and, until now, the company's exclusive partner for the 2018 iPhone generation.
A Bloomberg report reveals that LG Display will produce between 2 million and 4 million OLEDs, but production should increase in the coming months. There is a possibility that LG will supply OLED screens for one of the two OLED iPhone models to be launched this year, while Samsung will remain the exclusive manufacturer of the other.
The OLED display used in the iPhone X is said to be the most expensive part of the device, and Apple was unable to negotiate the price since Samsung was the sole supplier. Apple plans not to necessarily abandon its contract with Samsung ,but to achieve better prices for the next-generation iPhones.
“Securing a second OLED display supplier is crucial for Apple, as it will allow the company to reduce its dependence on Samsung, which is currently the sole supplier. At the same time, it will help accelerate the widespread adoption of OLED displays. More suppliers means more volume and, in turn, lower prices,” Jerry Kang, senior principal analyst at IHS Markit, said, as quoted by the source.
While LG has begun production of OLED panels, it doesn't necessarily mean they're ready to be used in iPhones. There are two different approvals that need to be granted before that can happen, the first of which is due in July. On the other hand, there's a greater chance that LG will gain a bigger role in supplying OLED displays for the 2019 iPhone lineup.
Apple is expected to release new iPhone in September, with two of them using OLED displays, while a third and more affordable configuration will come with LCD.
