LG Reportedly Starts Manufacturing OLED Screens for Apple – Expected Shipment to Start This December
Back in April, it was reported that LG is behind schedule on the production of OLED screens, but by September, the company’s panels had cleared a series of Apple’s quality tests. According to a new report, the Korean giant has now started producing OLED panels for Apple at its E6 production line in Paju, with delivery slated for next month.
LG Will Reportedly Supply Apple With 400,000 OLED Units This Year
LG had reportedly started placing orders for parts and materials last month, with the initial process started. The company will slowly ramp up production for a mid-December delivery. Even though production yields haven’t been disclosed yet, industry observers think that the company will supply nearly 400,000 units to Apple this year. With each unit expected to cost around $90, this translates into revenue of nearly $36 million.
Currently, Samsung has a 95 percent market share of the OLED market and remains to be the biggest supplier of such displays to Apple. Comparatively, LG only accounts for a small chunk of the supply but this is a great opportunity for the company to expand its OLED business. The manufacturer is already known for color-rich OLED TVs. If it is able to appease Apple, meet quality standards, and ramp up production, it will be a win-win situation for both.
This is because Apple would get a chance to reduce its reliance on Samsung, while LG will get an opportunity to accelerate its OLED business and generate revenue in the process. However, it is worth mentioning that LG-made panels seen on its own V30 and Google’s Pixel 2 XL were heavily criticized so the learning curve could be a little steep. However, considering Apple’s high-quality standards, we’d like to believe that LG would not want to miss this opportunity.
As for consumers, the entry of a second player could help break up Samsung’s monopoly and drive down the costs of smartphones. However, this might not be true for iPhones as Apple isn’t so fond of passing on cost cuts to customers. An example of this can be highlighted with the price reduction of NAND flash memory. While global prices have started to drop, Apple didn’t pass these savings to its loyal customer base.
News Source: ETNews
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