Apple to invest $2.67 Billion in LG Display to secure OLED displays for iPhone models

Category: MOBILE & WEARABLE, TECH NEWS 3 0

This year, the premium iPhone 8 marks the first iPhone ever to sport an OLED display. OLED displays are much brighter and more power efficient than the traditional LCD displays that are found on the current iPhone models. However, there is a shortage of OLED panels on the market, and Apple is undoubtedly planning something to deal with the situation.

The Cupertino Company has been sourcing OLED panels for its upcoming iPhone from Samsung Display. The South Korean firm is expected to provide Apple with more than 100 million OLED panel units for this year’s premium iPhone. However, it seems that Apple needs a backup plan to meet the high demand.

Sources say that Apple is planning to invest $2.67 billion in LG’s OLED operation. This comes as a surprise as Samsung Display is currently supplying Apple with hundreds of millions of OLED units for iPhone models. According to sources, Apple will be making an advance payment to the South Korean firm to secure more than 40,000 OLED units for 2019 iPhone models.

Apple and LG Display has been in a long-standing partnership. The South Korean firm is now supplying Apple with OLED displays for the Apple Watch. However, the company is struggling to secure an order from Apple for OLED panels for smartphones. Sources say that LG Display will be investing $13.5 billion over the next three years to boost OLED panel production.

According to tech analysts, Apple’s move aims to increase OLED panel production and reduce reliance on Samsung Display. Google is also planning to invest heavily into LG’s OLED production line. Sources say that the biggest search engine on Earth has invested $875 million in LG to secure OLED panels for the next generation Pixel phones. Last week, sources said that Apple would build its own OLED panel research and development line in Taiwan to diversify its OLED supply chain.

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