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OLED iPhones may be here to stay, Apple tipped to front LG $2.7 billion for a supply line

By Daniel Petrov

Updated: Jul 28, 2017, 5:52 AM

30comments

Apple's OLED iPhones may be here to stay

LG might be keeping mum on exactly how much may Apple be fronting it for its giant investment in OLED display production, but industry sources are quickly swooping in to fill the void with numbers, as usual. Previously, they speculated that Apple may be responsible for $1.7 billion of the $8.5 billion total OLED panel-making bill, but now they up the ante with a cool billion more.

The $2.7 billion sum is said to be an advance payment by Apple for securing a production line dedicated entirely to iPhone displays, starting in 2019. Rumor has it that the 2018 Apple handsets might also all land with OLED screens, though these are likely to be supplied mostly by Samsung still. With a logistics chain master like the CEO Tim Cook at the helm, Apple is apparently trying to diversify its suppliers, even for a component that currently is a 95% market monopoly of Samsung.

Apple is thus set to secure at least 45,000 units of mother glass for 6.5th-generation OLED panels a month, which can be cut into quite a lot of iPhone displays. It's a win-win situation, as LG gets to offset some of the risks related to such a huge capital outlay, while Apple gets to diversify supply, and ensure a steady stream of OLED panels that apparently are a big part of its vision for the future of iPhones. Where does that leave Google, which was rumored to invest nearly a billion in LG's display-making business to secure its own switch to OLED, remains to be seen.

source: The Investor

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Daniel, a devoted tech writer at PhoneArena since 2010, has been engrossed in mobile technology since the Windows Mobile era. His expertise spans mobile hardware, software, and carrier networks, and he's keenly interested in the future of digital health, car connectivity, and 5G. Beyond his professional pursuits, Daniel finds balance in travel, reading, and exploring new tech innovations, while contemplating the ethical and privacy implications of our digital future.