Obviously, the addition of LG Display will help Apple to reduce its dependence on Samsung. Currently, Apple's iPhone X models have OLED display panels exclusively powered by Samsung. The key point is that Samsung is still the only one capable of meeting Apple’s capacity. Demand for OLED panel makers, and there has been news that Apple's new iPhone is still exclusively available from Samsung in 2018.
However, according to a Bloomberg report, although LG Display initially could only supply 2 million to 4 million OLED screens for Apple, which is far less than the iPhone's sales volume, the production volume should increase in the coming months, so LG is very likely to Become one of Apple's two new OLED iPhone screen suppliers this year. However, Samsung will still be the main supplier.
As we all know, the OLED screen used on the iPhone X is the most expensive component of the whole device, and since Samsung was the only supplier in the past, Apple has been in a very disadvantageous position in bargaining, and it is impossible to negotiate too much with Samsung. Even if LG's OLED screen production capacity can meet Apple's requirements, Apple will not consider abandoning the order contract with Samsung. Apple has been committed to the diversification of suppliers, in order to obtain better cost price for iPhone parts.
According to Jerry Kang, Senior Principal Analyst at IHS Markit, it is important for Apple to have a second OLED screen supplier because it will allow Apple to reduce its reliance on Samsung and gain an advantage in price negotiation. Not only that, but also, This move will also help Apple's iPhone product line accelerate the popularity of OLED screens. In any case, more suppliers usually means more adequate production capacity, as well as a more reasonable or lower cost price.
Bloomberg's report emphasizes that although LG has already started producing OLED panels for the iPhone, it is only expected to be used for the new iPhone. It is not yet clear whether LG can achieve this goal. At the same time, how to deal with the delivered goods is still from Apple. Decided that because Apple needs to go through two layers of approval, the first batch is expected to be around in July.
This means that if LG wants Apple's new generation of iPhone to use its OLED screen, it must ensure that another shipment is ready in July, ready for delivery before the iPhone is assembled, rather than lagging behind the production time of the new iPhone. LG is more likely to become one of the main suppliers of the iPhone in 2019, not this year.
Because Apple has a very high demand for OLED screen quality, it is very difficult for LG to achieve precise specifications that meet both high productivity and high productivity in the short term. LG's OLED screen has a poor reputation in the smart phone field. Previously, it encountered many after-sales problems. For example, Google Pixel 2 XL uses LG's OLED screen, but this screen has the obvious problem of color displacement and burn-in. Google's constant complaints in order to calm users, not only the software update, but also has to be warranty. Extended for one year.
Apple is expected to release a new generation of iPhone in September, two of which will use OLED screens, and the other will be a slightly shrinking LCD model with relatively affordable prices. A large number of analysts believe that Apple’s main push is still the LCD model, but the OLED screen is large. The model is also expected to become a best-selling model.