LG Display to Supply Apple with OLED and LCD Panels for 2018 iPhones

2018 iPhone

LG Display has signed a deal with Apple that will see it supply the latter with 3-4 million OLED panels and 20 million LCD panels for the 2018 iPhone lineup. Previous reports so far had only highlighted that LG Display will be supplying OLED panels to Apple this year.

With Apple sourcing 20 million LCD panels from LG Display, it is unclear if the company will continue to source panels from its other two LCD suppliers, Sharp and Japan Display. Both LCD panel makers are struggling to set up their OLED factories and the loss of LCD panel orders from Apple is going to be another major blow to them.

As for the OLED panels from LG, the DigiTimes article which is based on a report from Korea-based Newspin claims that LG will be manufacturing the OLED panels at its E6 6G plant in Paju, Korea.

Based on the contract, LG Display is expected to ship 3-4 million OLED panels as well as 20 million LCD smartphone panels to Apple in 2018, said the report, which added that LG Display will produce the OLED panels needed for the iPhone from its E6 6G fab in Paju.

Apple is reportedly investing $2.67 billion in LG Display and in turn, LG will set up an exclusive OLED production line for Apple.

The report also claims that LG Display is looking to secure the majority of 6.5-inch OLED panel orders for the 2019 iPhone from Apple. For this, the company is looking to ramp up its OLED yield to 10 million units this year.

LG reported a loss of upwards of $80 million dollar in the first quarter, and its losses are expected to double in Q2. Thus, a lot depends for the company on this deal with Apple and securing orders for future OLED panels as well.

[Via Digitimes]