Apple Pressing LG to Add OLED Display Production for 2018 iPhone, Limiting Samsung's Leverage

Amid reports Apple is investing billions of dollars to help LG begin production of OLED displays for future iPhones, KGI Securities analyst Ming-Chi Kuo has issued a new report sharing his take on the situation.

lg display logo
According to Kuo, the OLED display panel for this year's "iPhone 8" has been the "single most troublesome component for Apple in terms of bargaining power," as Samsung is currently the only company with design and production capabilities to make the displays. To counter Samsung's advantage, Apple is working hard to support LG's efforts to ramp up similar expertise and capabilities.

We think Apple is therefore committed to having LGD geared up for its OLED iPhone display business in 2018 as it seeks to reduce supply risks. Even though LGD may likely start off with minimal initial penetration in 2018 (we estimate no more than 4-6%), the effort, with the full commitment of both Apple and LGD, will help LGD mature during the process and steadily gain supply share from 2019 onward. This will in turn continuously boost Apple’s bargaining power on OLED prices.

Kuo predicts LG will capture 10–20 percent of iPhone OLED display production in 2019 and up to 20–30 percent in 2020, helping to diversify Apple's sourcing and limit Samsung's leverage.

While LG will have expertise at production of the display panels themselves, Kuo predicts Foxconn subsidiary General Interface Solution (GIS) will be brought on board to assist with lamination processes. GIS would also offer expertise in production troubleshooting and vertical integration with Foxconn, so it would be an ideal partner for accelerating LG's growth in Apple's display supply chain.

Top Rated Comments

DHagan4755 Avatar
87 months ago
I Doubt it. I don't for see the MacBook line ever having an OLED display. If anything, in the mere future, we might see micro LED make its debut at some point. It's still in development and I'm thinking if Apple decides to use a different display, micro LED would be the next step if the technology is mature enough at that point.
You don't follow things here close enough...
https://www.macrumors.com/2016/11/01/future-macbooks-oled-displays/
Score: 6 Votes (Like | Disagree)
mistasopz Avatar
87 months ago
It will be good for Apple to catch up in this area finally. Some of us have been using OLED for 7 years now.
Score: 5 Votes (Like | Disagree)
X--X Avatar
87 months ago
Pretty slim based on the 7 years it has taken them to put OLED into a phone after Samsung did it with the S2.
Yeah but those displays sucked BAD real bad.

OLED always had some advantages to LCD but it was HORRIBLE when it came to color accuracy, which was OK because it was relatively young tech.

They caught up about 2 years ago and are now very competitive if not better in some instances (if factory calibrated).

So... Apple is not that late on this, I'm happy they waited those months, because I need accurate colors on my displays.
Score: 3 Votes (Like | Disagree)
BvizioN Avatar
87 months ago
Pretty slim based on the 7 years it has taken them to put OLED into a phone after Samsung did it with the S2.

Personally, I don't expect to see mLED in Apple products for at least another 7-10 years, and they could go the way of Nokia and Blackberry by then if they keep adopting new features years after their competitors.
That's what really separates Apple from these other companies. Apple does not usually put immature technology on their products, while others rush to be first and make their products suck. Apple tend to wait until technology is mature enough for their standards Good for them. That's one of the reasons I stick with Apple.
Score: 3 Votes (Like | Disagree)
DHagan4755 Avatar
87 months ago
Apple probably wants OLED for the MacBooks as well.
Score: 3 Votes (Like | Disagree)
AFDoc Avatar
87 months ago
I have an LG OLED TV and am very happy with it. IF they can bring anything like that to their phone displays they will look great.
Score: 3 Votes (Like | Disagree)

Popular Stories

iPhone Home Screen Gradient Blank Spaces 1

Sources: iOS 18 Lets Apps Be Placed Anywhere on Home Screen Grid

Sunday March 24, 2024 1:33 pm PDT by
iOS 18 will give iPhone users greater control over Home Screen app icon arrangement, according to sources familiar with the matter. While app icons will likely remain locked to an invisible grid system on the Home Screen, to ensure there is some uniformity, our sources say that users will be able to arrange icons more freely on iOS 18. For example, we expect that the update will introduce...
iPad Pro 2024 Landscape Camera Feature

New iPad Pro Again Rumored to Feature Landscape Front-Facing Camera

Monday March 25, 2024 5:43 am PDT by
The next-generation iPad Pro will feature a landscape-oriented front-facing camera for the first time, according to the Apple leaker known as "Instant Digital." Instant Digital reiterated the design change earlier today on Weibo with a simple accompanying 2D image. The post reveals that the entire TrueDepth camera array will move to the right side of the device, while the microphone will...
sonoma desktop wwdc

Apple Releases macOS Sonoma 14.4.1 With Fix for USB Hub Bug

Monday March 25, 2024 10:10 am PDT by
Apple today released macOS Sonoma 14.4.1, a minor update for the macOS Sonoma operating system that launched last September. macOS Sonoma 14.4.1 comes three weeks after macOS Sonoma 14.4. The ‌‌‌‌macOS Sonoma‌‌ 14.4‌.1 update can be downloaded for free on all eligible Macs using the Software Update section of System Settings. There's also a macOS 13.6.6 release for those who...
iPhone 15 General Feature Green

Apple Says These New iOS Features Are Coming Later This Year

Sunday March 24, 2024 7:45 am PDT by
Apple has previously announced three new iOS features that it said are coming to the iPhone later this year, as outlined below. The new features include the ability to install iPhone apps on the web in the EU, RCS support in the Messages app, and next-generation CarPlay. Web Distribution Apple recently announced that eligible developers will soon be able to distribute their iOS apps to ...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Seven Reasons to Wait for Next Year's iPhone 17

Tuesday March 19, 2024 5:20 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
maxresdefault

iOS 18 Rumored to Feature 'More Customizable' Home Screen

Sunday March 24, 2024 7:10 am PDT by
iOS 18 will feature a revamped Home Screen that is "more customizable," according to Bloomberg's Mark Gurman. He revealed this information in his Power On newsletter today, but he did not provide any specific details. Subscribe to the MacRumors YouTube channel for more videos. Apple will announce iOS 18 at its annual developers conference WWDC in June. Other features and changes rumored for...
combine images

Top Stories: iOS 18's Generative AI Features to Rely on Google?, Latest on New iPads, and More

Saturday March 23, 2024 6:00 am PDT by
We're getting closer to the launch of new iPad Pro and iPad Air models, while rumors about iOS 18 are continuing to ramp up with this week's surprise revelation that Apple has been talking to Google and others about potentially helping power the generative AI features expected to be a major part of this year's update. Other news this week saw the release of iOS 17.4.1 and iPadOS 17.4.1...