Apple To Add LG As Second OLED Display Supplier In 2018

Posted: Jul 31 2017, 7:59am CDT | by , in News | Apple

 
Apple to Add LG as Second OLED Display Supplier in 2018
  • Apple is solidly backing LG to produce OLED display for the iPhone 8

According to KGI Securities analyst Ming-Chi Kuo a majority of iPhones will have the LG display by 2019

Previously reports had surfaced claiming Apple has been spending billions of dollars to make sure LG begins production of OLED displays. So these OLED displays can be used in the upcoming iPhone 8. An analyst called Ming-Chi Kuo at KGI Securities has issued a report detailing his take on Apple’s initiative with LG.

According to the report the OLED display panel has been the single most troublesome component for Apple. In terms of bargaining power for the new iPhone 8 the display production has been difficult. So far Samsung seems to be the company with design and production capabilities required to produce OLED displays.

Samsung has used this capability to their advantage with the infinity screens in the new S8 and S8 plus. It seems Apple has been working relentlessly to make sure Samsung is not the only producer of OLED display screens. The tech giant from Silicon valley has been supporting LG in their endeavor to produce the screens.

Ming-Chi Kuo of KGI Securities says in the report that "Samsung is now Apple’s sole iPhone OLED panel supplier across front- and back-end manufacturing. We think LGD could institute a similar production model. However, considering its strengths are in front-end process, collaborating with a specialized back- end process provider like GIS will, in our view, significantly boost iPhone OLED panel output rate."

The report further predicts LG will produce 10% to 20% of the OLED display required for future iPhones by 2019. By 2020 LG may even be able to up the production percentage by 20% to 30%. The backing of LG by Apple is a way for the company to outsource and limit the leverage Samsung has over it right now.

In his report Kuo further stated LG will bring Foxconn subsidiary General Interface Solution (GIS) on board for lamination processes of the display. Other than that LG will produce the OLED display screens themselves. Bringing GIS on board will also make the display supply chain process much faster for LG and Apple.

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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
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