Apple has turned to LG's display division for supply, in order to reduce its dependence on Samsung. However, the report said that this strategy failed to achieve the progress of Apple's plan, because the LG suffered some setbacks.
According to latest rumors, Apple plans to release several new iPhones this year, including 5.8-inch and 6.5-inch models. Both models will be equipped with OLED displays. Such displays can be controlled at the pixel level. This results in better black levels and more precise power management. In addition, OLED displays tend to have better color saturation than traditional LCD (liquid crystal display) displays. The problem is that the production of OLED displays is very difficult.
Apple has sought to supply LG for this, but there are reports that LG is facing production delays, which will force Apple to continue to use Samsung as its sole supplier. LG's problem lies in the manufacturing process, because Apple needs more Small energy-saving display screens, and LG's manufacturing process can only produce larger OLED panels. According to "The Wall Street Journal" report, sources revealed that Apple also asked LG Display to carry out multi-round prototype production of OLED displays that may be equipped with the iPhone. This is a non-traditional practice.
Consulting company Fomalhaut Techno Solutions pointed out that Apple needs to look for other suppliers because the display is the highest cost component in the whole machine. The company told the Wall Street Journal that the display's total estimate of $376 per mobile phone The cost is about $97'. If Apple can reduce the supply price of the display, it can lower the price of the iPhone X (currently starting at $999), or offer consumers lower-rent options.
On the other hand, Apple can also get a higher profit rate. As the rumored that the third new model that Apple will launch this year will be equipped with a 6.1-inch LCD display, production delay may not be for the company's Profitability has caused too much impact.