Apple Planning to Switch to OLED for All iPhone Models Next Year – Japan Display in Trouble as Shares Drop 10%
Japan Display happens to be the primary supplier of LCD panels to Apple and its shares dropped by 10 percent following the news that its client could be adopting OLED screen technology for all iPhone models landing in 2019. Two models scheduled to get released this year have already been reported several times to feature OLED technology, so it honestly feels like a possibility that this move is going to be made. However, this could force Apple to charge more for the basic iPhone model due to the costs of procuring OLED technology.
Japan Display to Get Relief From Government but It Is Very Slow in Catching up in Producing OLED Screens to Provide to a Variety of Clients, Including Apple
For 2018, Apple is said to be relying on Samsung for its OLED screens but from 2019, the company could be putting several suppliers in its pocket in order to get better pricing for this component. One of them could be BOE, a Chinese manufacturer, and LG Display. BOE might take away a massive market share away from Samsung due to its bid to increase OLED production, and as Japan Display’s market share dropped by 10 percent, LG Display’s shares increased by 5 percent, revealing another Korean supplier.
Lee Won-sik, an analyst at Shinyoung Securities in Seoul states that Apple could be diversifying its sources when it comes to OLED suppliers and one of them could be LG Display.
“If Apple uses OLED for all models for next year, that could raise hopes for LG Display to take a slice, as Apple may want to diversify its sources for OLED supply.”
The incorporation of OLED technology could mean that Apple might be exploring the options of both Face ID and an in-display fingerprint reader on all 2019 iPhone models because the latter form of biometrics can only be placed beneath OLED panels. It has also been reported that at least one model from Apple is going to be released with a triple-lens camera at the back next year.
Thanks to the diversity of its suppliers, the company might get improved pricing for this OLED component and in short, it might not be forced to charge such a hefty premium from its customers, but knowing the company’s pricing strategy, this might not be the case in the future.
News Source: Reuters