Apple is said to have invested an investment of 2.27 billion euros invested in an OLED production facility from LG. According to the report, the company would like to make itself more independent of Samsung Display.
Investment has been pointing for a long time
Apple’s investment plans already a few weeks ago, but still without precise numbers and running times. On the other hand, there was more detailed information on the investment objective. The amount is to flow into the new LG display factory E6 in Paju (South Korea), which according to reports will produce OLED displays for future iPhones.
Other display customers such as LG Electronics and some Chinese customers will most likely get their display orders from LG’s second new OLED factory E5 in Gumi (South Korea).
Apple pays billions for OLED production
The latest news from The Investor calls new deal details. This is an amount equivalent to 2.27 billion euros, which Apple pays in advance as an investment for the OLED factory in South Korea. LG is to ensure in return, starting from 2019 monthly 45,000 OLED units for the iPhone to produce.
IPhone 8 relies on OLED panels from Samsung
While all previous iPhone models still rely on LCD technology, Apple’s iPhone 8 will most likely use an OLED display. For this year’s iPhone flagship, which is expected to appear in September, the LG deal is still too late. 2017, Samsung will be the only OLED supplier for the iPhone, since, apart from the South Korean company, no one can deliver quality standards and large numbers of units.
Samsung dominated OLED market
Samsung Display holds 95 percent of the global OLED market for smartphone displays. Other manufacturers such as LG and Sharp are currently busy finding the connection to the OLED business and gradually ramping up the in-house production.
Apple’s billion investment is seen as a measure against Samsung’s market power. Ultimately, the iPhone manufacturer promises more supplier alternatives, which would lead to lower display prices and strengthen Apple’s negotiating position.
From 2018 only OLED iPhones planned
The OLED demand from Apple will grow strongly in the coming years. From 2018, all new iPhone models will use the display technology, which could lead to bottlenecks in the OLED market.
While Apple will still have the Panels to the bulk of Samsung next year, the company could make itself independent from Samsung as a display supplier by the increasing production quantity of LG.