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LG, Samsung to Supply Oled Displays for Apple’s iPhones
The deal would involve spending nearly $13 billion over the next two to three years to ramp up production of the new screens.
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Both Samsung and LG are already Apple partners for a number of products, but rumor has it that the former was very close to losing a contract with the Cupertino-based company for the manufacturing of the next iPhone chip. At the end of November we reported that Apple had notified their supply chain of its plan to switch to OLED displays.
Samsung and LG Display will supply OLED to Apple.
LG and Samsung will supply OLED display for Apple iPhone 7, says a report.
Apple Inc. (NASDAQ:AAPL)’s focus shift to OLED display should have huge implication on current LCD suppliers.
The report comes after years of speculation that Apple will start using the next-generation technology in its phones. It is because OLED screens are much thinner as compared to the now used LCD iPhone screens and, therefore, allows deeper blacks.
While today’s report from Korea focuses on local Samsung and LG, it was reported earlier this month that Japan’s JDI confirmed it too was seeking to supply Apple with OLED displays for future iPhones.
Samsung Display, which now supplies OLED smartphone panels to parent Samsung Electronics and Chinese vendors, is likely getting bigger volumes from Apple than LG Display, the paper said.
The report further informs readers that LG is thinking of cutting costs by converting existing LCD production lines into OLED production lines.
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Negotiations were drawn out in part because Apple [pushed] Samsung to accept low single-digit margins. Right now the only Apple device that uses OLED [is] Apple Watch. OLED display has been found to provide sharper images and brighter colors than LCD displays.