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Apple ropes in LG as second supplier for OLED displays, reducing reliance on Samsung

first_imgApple will soon have a secondary supplier for its OLED needs. Bloomberg reports based on people familiar with the matter that Apple is looking to LG Display to supply a good amount of OLED panels for future iPhones while the rest will continue to be supplied by Samsung. This move will allow Apple to lower the cost of its iPhones and source OLED panels more quickly.Samsung has so far been the sole supplier of OLED panels for Apple, which has allowed the South Korean giant to charge a higher premium. This is one of the reasons the iPhone X, which uses Samsung-made OLED display, costs a whopping $1,000. With LG Display getting into the mix, Samsung will no longer have the monopoly, suggesting cheaper iPhones in the future. This in turn has also caused the iPhone X to miss sales expectations leading to a general slump in sales.The report adds that LG Display will initially supply between 2 million to 4 million OLED displays and will continue to ramp up capacity. This is a very small number compared to what Apple ships every year, which means a majority of OLED displays for its upcoming iPhones this year will still be in the hands of Samsung.”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 means more volume, and in turn, lower pricing.”advertisementIf the deal goes through without a hitch, Apple could source a bulk of OLED displays from LG Display for its 2019 iPhones. Apple is expected to come out with three iPhones this year, with two of them rumoured to sport OLED displays. The Cupertino company is slowly making the transition to OLED display, but there is no clear indication that it plans to ditch LCD display completely next year. The 6.1-inch LCD iPhone rumoured among the trio is also expected to be the cheapest and should help boost Apple’s sales.Notably, this isn’t the first time LG Display’s name has been attached with Apple. Late last year, a report surfaced that Apple had begin working with LG Display on foldable OLED displays for iPhones in 2020. A report earlier this year also mentioned about Apple’s doubts on whether LG Display would be able to supply enough OLED panels to act as a secondary supplier. Bloomberg also reported earlier in the year that Apple is in talks with China’s BOE Technology Group Co. to supply OLED displays for iPhone. If Apple manages to diversify suppliers, the company will be in a better position to meet iPhone sales expectations and we could eventually see the cost of iPhone come down.last_img read more