LG to manufacture OLED screen for 2018 iPhones

Over the past few weeks, there has been a lot of leaks and rumours surrounding Apple’s upcoming flagship, the iPhone X Plus. Though there is no confirmation that such a handset even exists, details about it have been making the rounds.

The latest bit of information is that Apple has tapped LG Display to manufacture the OLED screens for the yet rumoured handset.

This shows that Apple is lessening its reliance on Samsung, the brand that already makes OLED panels for the iPhone X.

As per a report by South China Morning Post, Apple is going to land a second supplier for OLED screens used in their iPhones. This is a major step in Apple’s push to reduce manufacturing costs for its flagship handset and to reduce its reliance on Samsung Electronics.

Sources have informed South China Morning Post that initially, LG will manufacture 2 million to 4 million units and that this is a small amount relative to Apple sales as the US- based brand continues to work on ramping up capacity.

This, in turn, would aid Apple in gaining leverage in pricing negotiations with Samsung who are currently the sole supplier of OLED displays for the iPhone X and Apple main rival where smartphones are concerned.

The report notes that a successful supply deal would favour both Apple and LG. Apple would be able to buy significant volumes from LG for next year’s iPhone model, as it tries to fight off a slump in smartphone sales.

The report adds that LG needs a fresh source of revenue as it faces a slide in the price of LCD displays. “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,” said Jerry Kang, a senior principal analyst at IHS Markit.

“At the same time, it will help accelerate a broad adoption of OLED screens. More suppliers mean more volume, and in turn, lower pricing.”

It is said that LG displays would be used in one of the upcoming iPhones that are set to be released this year. However, LG wants to supply wants to supply all the screens for that Apple model, though it is not clear it can yet achieve that. This shipment is subject to two layers of consent the primary of which is set to take place in July.