Apple Reportedly Investing Billions in LG to Make OLED Displays for Future iPhones

[MacRumors]

Apple is widely expected to introduce its first iPhone with an OLED display later this year, after a decade of using solely LCD technology.

Earlier reports peg Samsung as the exclusive supplier of OLED displays for the high-end smartphone, as the only company that can reliably produce both the quantity and quality of panels that Apple demands.

That could change within a few years, however, as Apple has decided to invest 3 trillion won/$2.67 billion in LG's OLED production for smartphones, according to The Investor, citing a Korea Economic Daily newspaper report.

Apple will reportedly make the investment as advance payment for the planned OLED display supplies from the Korean display maker. The iPhone maker is said to secure 45,000 panels per month for future iPhones from 2019.

Apple always aims to diversify its supply chain in order to secure lower prices and reduce the risk of relying on one supplier, so it's easy to see why the iPhone maker appears to be willing to help LG ramp up OLED display production.

Reports about Apple's potential investment first surfaced earlier this month, after the companies allegedly tentatively agreed upon the investment plans, and it now appears that a deal has been or is nearly finalized.

LG is likely to build a production line dedicated to iPhone orders only, as part of its agreement with Apple, according to The Investor.

It is frequently rumored that Apple will introduce a trio of new iPhone models later this year, including iterative iPhone 7s and iPhone 7s Plus models with LCDs and the so-called "iPhone 8" or "iPhone X" with an OLED display.

Rumors suggest Apple could switch to OLED displays for its entire iPhone lineup by 2019, potentially lining up nicely with LG's production readiness.

Article Link: Apple Reportedly Investing Billions in LG to Make OLED Displays for Future iPhones

 

[jonnysods]

That will be an investment with a great rate of return.

 

[Sunny1990]

LG makes nice OLED displays. it's Good apple is investing money in the right place. Can't wait to see OLED display in my next iPhone.

 

[adamjackson]

Tim championed the Flash Storage investment over a decade ago that allowed apple to basically tie up an entire industry for years. I expect this to have a similar outcome. This is a very smart use of their cash reserves.

 

[JaySoul]

A win/win for both companies.

 

[lincolntran]

Once again.....Apple investing their money without checking with CEO & CFO MacRumors members here....sigh!

 

[EdT]

Once again.....Apple investing their money without checking with CEO & CFO MacRumors members here....sigh!

Out of the 4 replies on this article, excluding yours and now mine, everyone seemed very, very positive about this.

 

[44267547]

A win/win for both companies.

I think so as well. LG being a leader in OLED development, this ultimately will be a long term investment once their contract ends with Samsung Over the next two years.

 

[Zirel]

1. LG takes money from Apple
2. Apple makes better phones
3. LG sells less phones
4. LG more dependent on parts business
5. LG can’t haggle with Apple prices because they have a loan to pay and they need that order
6. LG has to stop trying to compete with Apple so Apple sells more phones, orders more screens, LG keeps alive
7. Apple gains more marketshare keeps the cycle

Isn’t this a good move for LG?

 

[adamjackson]

Isn’t this a good move for LG?

One could also argue that Samsung supplying parts to Apple immediately benefits Samsung's own smartphones both in a more healthy balance sheet for Samsung and possibly lowering the price of each Galaxy phone as Apple is essentially subsidizing Samsung's own R&D.

I don't think we'll ever get to a place though where Apple designs and manufacturers everything in the iPhones. The industry changes so quickly it's better for Apple's bottom line to allow other companies to spend the up front money in R&D to sell these to Apple. If they lose money because a technology became obsolete too quickly, they're the ones who have to take the write-off, not Apple who is just a customer.

 

[modemthug]

What happened to micro-LED?

 

[DocMultimedia]

At some point the Apple glasses/AR headsets with flexible OLED need to get made. Could be slowly ramping up for that in the next few years.

 

[Tycho24]

What happened to micro-LED?

Last i heard... was still on path to be manufactured in 1.5”-2” sizes by 2019.

 

[apolloa]

One of THE BEST SCREENS I've ever seen is STILL my Nexus 5, mad by LG. So an OLED screen by them in the iPhone would be very very nice.

Who makes the OLED screens for the Apple Watch? Because that's pretty darn good too.

 

[Weaselboy]

One of THE BEST SCREENS I've ever seen is STILL my Nexus 5, mad by LG. So an OLED screen by them in the iPhone would be very very nice.

I've never really seen a phone with an OLED screen up close. If you lay it on the table next to an iPhone 7/7+ is the difference easily noticeable?

 

[apolloa]

I've never really seen a phone with an OLED screen up close. If you lay it on the table next to an iPhone 7/7+ is the difference easily noticeable?

The Nexus 5 had an LCD panel and I have always loved it, Apple screens are still very good too, I do notice the difference between my 6S and the 7. I had the Note 5 twice and it's OLED screen was good, but I wouldn't of said it's amazing best thing ever?
But it's pointless asking who likes what with screens, like going into a TV shop seeing all those different models lined up next to each other, all with different pictures, I like Panasonic, others like Sony, others Samsung etc, I always thought it must be the same with mobile devices?

 

[ColdShadow]

LG makes nice OLED displays. it's Good apple is investing money in the right place. Can't wait to see OLED display in my next iPhone.

Not as good as Samsung OLEDs.
Samsung ALWAYS betters LG in tech,build quality and quality control.

 

[justperry]

So...in a few (2) years you get two different OLED (Tech) panels in an iPhone, Samsung's Amoled and LG far superior and much cheaper OLED Panels.

 

[ColdShadow]

The Nexus 5 had an LCD panel and I have always loved it, Apple screens are still very good too, I do notice the difference between my 6S and the 7. I had the Note 5 twice and it's OLED screen was good, but I wouldn't of said it's amazing best thing ever?
But it's pointless asking who likes what with screens, like going into a TV shop seeing all those different models lined up next to each other, all with different pictures, I like Panasonic, others like Sony, others Samsung etc, I always thought it must be the same with mobile devices?

It's not about personal preference as you say.
OLED is the superior tech.there is no ifs or buts.
Not only it has better punchy colors and significantly better blacks but the tech itself is superior to LCD..lower power consumption and possibly of thinner panels,flexible panels etc

Also regarding your example of going to TV shop..as soon as you see an OLED TV next to an LED/LCD,you will notice.OLED is simply superior,regardless of brand.

 

[justperry]

Not as good as Samsung OLEDs.
Samsung ALWAYS betters LG in tech,build quality and quality control.

Wrong, OLED technology by LG has a patented system in it bought from Kodak, far superior to Samsung OLED.

 

[apolloa]

It's not about personal preference as you say.
OLED is the superior tech.there is no ifs or buts.
Not only it has better punchy colors and significantly better blacks but the tech itself is superior to LCD..lower power consumption and possibly of thinner panels,flexible panels etc

Also regarding your example of going to TV shop..as soon as you see an OLED TV next to an LED/LCD,you will notice.OLED is simply superior,regardless of brand.

Yes it is, go and look at a load of TVs lined up, doesn't matter if they are OLED or LCD, they will all have different pictures, people will choose which they prefer, I personally don't find OLED as fantastic as everyone says over LCD, and that's as I said after having the Note 5 twice, I find my Nexus 5 LCD screen to be better.

 

[mlenger]

So why is Foxconn planning to build a display factory in Wisconsin? It does not look like it's for Apple. Just asking...

 

[kdarling]

Interestingly, Samsung has also signed a big deal with LG... to supply them with LCD screens for TVs.

(Samsung has been swinging their own production to OLED.)

 

[apolloa]

Another fantastic reason for Apple to use LG is because of...

http://www.quora.com/Can-the-touch-screen-of-a-smart-phone-be-used-as-a-finger-print-scanner

http://m.koreatimes.co.kr/phone/news/view.jsp?req_newsidx=203761

Most likely something most in here forgot about or didn't realise of LG?

 

[justperry]

Another fantastic reason for Apple to use LG is because of...

http://www.quora.com/Can-the-touch-screen-of-a-smart-phone-be-used-as-a-finger-print-scanner

http://m.koreatimes.co.kr/phone/news/view.jsp?req_newsidx=203761

Most likely something most in here forgot about or didn't realise of LG?

The news in the second link is from may last year yet we didn't see anything yet. (on other handsets too)

I do want to believe Apple incorporates this into it's display instead of the other options mentioned here before like TiD on the back/side or no TiD at all.

As for your first link, can't acces it right now, somehow my VPN connection doesn't allow it.