LG Display might be ramping up its OLED production, just for Apple to use these screens in its upcoming iPhone lineup, which is said to include two models that will be running the aforementioned display tech. However, where the original report detailed that the manufacturer would be responsible for supplying between 2-4 million OLED orders to Apple, the latest update states that the maximum order has been increased to five million units.
LG Display Frantically Attempting to Boost OLED Capacity - This Move Will Give Apple Leverage Over Samsung When It Comes to Pricing
Citing the Korea Times, an industry official familiar with the matter stated that LG Display will be increasing its overall production capacity to provide Apple with more orders for the upcoming iPhone models.
“Initially, Apple will get between 3 million and 5 million OLED displays from LG Display. LG plans to increase its production capacity.”
Additionally, the eventual arrival of foldable smartphones in the future will require OLED technology and Apple will be looking to add more suppliers on board so it is able to command even better component pricing.
“Apple is attempting to release new iPhones with enhanced features next year and it is eyeing developing foldable iPhones, which will come several years later.”
Apple is reportedly working on a foldable iPhone for 2020 according to our previous report, but let us focus on the models that will be arriving later this year for now.
According to a fund manager at a U.S.-based investment bank in Seoul, the Korean manufacturer wants to be more involved in Apple’s partnership since it wants to generate a higher amount of revenue. In contrast, Samsung supplied around 110 million OLED orders to Apple, which just shows the difference between the latter and LG Display’s resources at hand.
“LG wants a bigger cut than what the company has at present as LG aims to spend more to boost its OLED production capacity with continued financial assistance from Apple.”
The number of orders that LG is planning to provide might be pale in comparison to Samsung’s, but it will give Apple a small stepping stone to take away that exclusivity from the Korean giant. Let us hope that the orders LG Display provides will be pristine in terms of quality.
News Source: Korea Times