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Samsung To Supply Apple’s iPhone With Small OLED panels

The new piece in this report, however, is how concrete it is in explaining the size and quantity of AMOLED displays that Apple has allegedly ordered Samsung to make, and the fact that their first use is scheduled for the eventual iPhone 7S next year. Not only are OLED panels more expensive than LCD panels, but the color saturation of the displays have been known to become muted over time.

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Samsung declined to comment to the Korean Herald regarding the deal, which would be typical behavior by any of Apple’s suppliers.

Interestingly, a report from Nikkei last month relayed that Apple only recently made a decision to accelerate the incorporation of OLED panels on the iPhone, largely to help “offset a predicted stall in iPhone sales”.

Under the deal, the Samsung affiliate will provide 100 million units of 5.5-inch OLED panels for the iPhone 7s starting next year.

The contract is expected to drive the Korean display panel maker to make a large scale of investment in expanding A3 production facility in Asan City, South Choongcheong Province. Samsung has the competitive edge for smartphone OLED panels.

According to one source from industry tracker IHS, Samsung Display took up to 23% shipment of displays in the global market 2015, specifically in smaller than 9 inches displays.

Analyst Ming-Chi Kuo of KGI Securities, a financial services group covering the Asia-Pacific, said that Apple will entirely revamp its iPhone lineup in 2017.

The deal is also significant as Samsung and Apple had been engaged in a patent battle for the past five years.

On Friday, LG Display shares ended at 25,050 won.

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The Samsung displays are expected to replace the liquid crystal display panels used in the current iPhones that are produced by LG Display.

Samsung Display reportedly signed a contract early this month with Apple to supply around 100 million units of 5.5-inch panels annually for three years