Apple Wants LG to Ramp up OLED to Production – Tech Giant Willing to Invest Heavily for LG Display to Speed up Activity
Despite reportedly signing a multi-billion dollar OLED deal with Samsung, Apple also wants LG Display to enter the fold of smartphone OLED business in order to lessen the disparity between supply and demand. To make this work, the Cupertino tech giant is expected to invest a great deal in the production lines of LG Display as long as the manufacturer is exclusively able to dedicate smartphone OLEDs for Apple’s mobile devices.
Apple Reportedly Investing Between $1.75-2.62 Billion USD in LG Display to Ramp up OLED Production Exclusively for the Tech Giant’s Upcoming iPhone Lineup
With a massive investment reportedly coming in, LG Display could have sufficient capital to ramp up smartphone OLED production, which is vastly inferior compared to the resources that Samsung has under its thumb.
Apple currently has to rely on Samsung, and with LG Display dropping into the mix, the tech giant will have greater say when negotiating component prices for future iPhones. Since Apple sells more smartphones than any manufacturer out there, it will have a huge grip on the decision.
According to an industry source on condition of anonymity, the following has been stated regarding Apple’s requirements for smartphone OLED panels.
“Samsung Display is the only display maker that meets Apple’s strict quality criteria for now. LG Display is said to be meeting about 70 percent level of the requirements, while Chinese display makers are still struggling to catch up with that of LG.”
Apple’s huge investment is expected to be poured into LG Display’s new plant, called E6, and it will be able to produce a monthly capacity of 30,000 units of the sixth-gen OLED mother glass, which is said to be dedicated for future iPhone lineup.
There’s no word if more suppliers are going to be added to the production list, but for now, it is Samsung and LG Display (in a smaller capacity). The addition of newer suppliers will eventually contribute to Apple raking in larger margins for future iPhones, so it is very important that all eggs are never placed in one basket.
Is Apple’s investment a smart one from a business acumen point of view? Tell us your thoughts right away.
Source: The Investor