LG Display will reportedly supply Apple with 2-4 million units of OLED panels for the iPhone X Plus. While this is a small amount, the move will allow Apple to negotiate a better deal for OLED panels from Samsung.
While LG is interested in supplying Apple with OLED panels for its entire iPhone lineup, it is not going to be possible right now as the company is facing yield issues.
However, the very fact that LG Display will be supplying Apple with OLED panels for at least one of its 2018 iPhone model.
South Korea’s LG Display will initially supply between 2 million and 4 million units, small relative to Apple’s sales, as it continues to work on ramping up capacity, said one of the people, who asked not to be identified because the matter is private.
Apple has reportedly paid Samsung $110 per panel for the iPhone X’s display. This was one of the key reason behind Apple pricing the iPhone X at a steep $999. Apple is trying to negotiate a better deal for OLED panels from Samsung for its 2018 iPhone lineup, and with LG Display supplying at least some OLED panels to Apple this year, it would provide Apple with some leverage in its negotiation with Samsung.
LG Display supplying OLED panels to Apple will also help push the OLED adoption further among other Android OEMs due to the availability of an additional supplier.
Apple had reportedly invested upwards of $2.6 billion in LG Display to help set up its OLED production line. While the company would have expected LG Display to supply more OLED panels for its 2018 iPhone lineup, the latter has faced yield issues in scaling its OLED panel production.