OLED Displays In iPhones: Apple Looks Beyond Samsung

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Apple Inc. (NASDAQ:AAPL) never believed in putting all of its eggs in one basket. However, when it comes to the supply of OLED displays in iPhones, Apple finds itself in a tough situation. Looks like, the situation is no more the same. If we believe in the recent reports by ETNews, LG’s sixth generation OLED Displays have cleared the quality tests designed by Apple, and soon LG would start supplying these OLED displays for iPhones.

For long Apple faced enough criticism for not introducing OLED display in iPhone. However, with the launch of iPhone X last year Apple zipped the mouth of all those critics. Until now, Samsung was the sole supplier of OLED Display used in iPhone X, but by finding its arch-rival LG in a direct competition the equations may change, sooner or little later.

A South Korea source has confirmed the LG is gearing up to supply its sixth-generation OLED Displays for Apple iPhones. For long, the farther one was leaving no stone unturned to be a part of the supply chain for the OLED Displays used in iPhones. LG, on the other hand, neither confirmed nor denied the development.

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Such a deal would definitely have a positive impact on the overall market presence of LG Display. Having Apple as one of its esteemed customers will provide LG with an edge over Samsung which has been largely dominating the OLED Display market.

For Samsung it’s a bit of setback; Apple has been completely dependent on Samsung for the new range of iPhones that sport OLED Display. Last week Apple announced three new iPhones – iPhone XR, iPhone XS and iPhone XS Max – of which two sports OLED Displays. With LG being the supply chain Samsung may not be pampered by Apple as it used to be earlier.

Apple has been reportedly exploring the alternate of Samsung for long. The iPhone maker is well aware of the Samsung’s stronghold in the OLED Display market. This could be the possible reason why Apple is refraining from taking any aggressive initiative without proper due-diligence. On the other hand, Apple is well aware of the side-effects of putting all its eggs in one basket and apparently wants to end the love-hate relationship with Samsung as soon as possible.

According to sources, by 2019, Apple will switch completely to OLED for all new iPhones.  It’s unclear what percentage of OLED panel supply would be taken care by LG Display, but considering it’s going to be a fresh start with LG Display, Samsung account for the largest percentage of supply of OLED Displays to Apple. With LG Display in play, it would be interesting to see if LG Display could eat into the Samsung’s share and if Apple could use the new equation to arm-twist Samsung in future. Till then, stay tuned!

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