As per a report from ETNews, Apple is close to entering into an agreement with Samsung and LG that will see both companies supply flexible OLED panels for the iPhone. The combined value of the deal is reported to be 15 trillion won ($12.8 billion).
Both Samsung and LG will work towards increasing the production capacity of their OLED displays over the next year or two. To reduce investment costs, LG will be switching one of its existing LCD lines to manufacture OLED panels. Apple is also expected to pay for some of the equipment that will be required by LG Display and Samsung Display to increase their production capacity.
While the report does not talk about a specific timeframe, it does make one thing clear: the iPhone 7, due to be released in September 2016, is not going to feature an OLED display. Instead, as rumors point it is likely that we will see Apple use OLED panels on the iPhone that it will release in either 2017 or 2018 after it has solved all major technical issues with them.
The report also claims that while Apple’s agreement with LG is pretty straightforward, the negotiations between Samsung and Apple are still ongoing. While Samsung also supplies other smartphone components to Apple, it has the advantage of being the leader when it comes to OLED panels out there right now. Apple, on the other hand, wants Samsung to reduce its profit margin to single digits due to the sheer volume of its requirement.
[Via ET News]Like this post? Share it!