Apple Pressing LG to Add OLED Display Production for 2018 iPhone, Limiting Samsung's Leverage

Amid reports Apple is investing billions of dollars to help LG begin production of OLED displays for future iPhones, KGI Securities analyst Ming-Chi Kuo has issued a new report sharing his take on the situation.

lg display logo
According to Kuo, the OLED display panel for this year's "iPhone 8" has been the "single most troublesome component for Apple in terms of bargaining power," as Samsung is currently the only company with design and production capabilities to make the displays. To counter Samsung's advantage, Apple is working hard to support LG's efforts to ramp up similar expertise and capabilities.

We think Apple is therefore committed to having LGD geared up for its OLED iPhone display business in 2018 as it seeks to reduce supply risks. Even though LGD may likely start off with minimal initial penetration in 2018 (we estimate no more than 4-6%), the effort, with the full commitment of both Apple and LGD, will help LGD mature during the process and steadily gain supply share from 2019 onward. This will in turn continuously boost Apple’s bargaining power on OLED prices.

Kuo predicts LG will capture 10–20 percent of iPhone OLED display production in 2019 and up to 20–30 percent in 2020, helping to diversify Apple's sourcing and limit Samsung's leverage.

While LG will have expertise at production of the display panels themselves, Kuo predicts Foxconn subsidiary General Interface Solution (GIS) will be brought on board to assist with lamination processes. GIS would also offer expertise in production troubleshooting and vertical integration with Foxconn, so it would be an ideal partner for accelerating LG's growth in Apple's display supply chain.

Top Rated Comments

DHagan4755 Avatar
50 months ago
I Doubt it. I don't for see the MacBook line ever having an OLED display. If anything, in the mere future, we might see micro LED make its debut at some point. It's still in development and I'm thinking if Apple decides to use a different display, micro LED would be the next step if the technology is mature enough at that point.
You don't follow things here close enough...
https://www.macrumors.com/2016/11/01/future-macbooks-oled-displays/
Score: 6 Votes (Like | Disagree)
mistasopz Avatar
50 months ago
It will be good for Apple to catch up in this area finally. Some of us have been using OLED for 7 years now.
Score: 5 Votes (Like | Disagree)
X--X Avatar
50 months ago
Pretty slim based on the 7 years it has taken them to put OLED into a phone after Samsung did it with the S2.
Yeah but those displays sucked BAD real bad.

OLED always had some advantages to LCD but it was HORRIBLE when it came to color accuracy, which was OK because it was relatively young tech.

They caught up about 2 years ago and are now very competitive if not better in some instances (if factory calibrated).

So... Apple is not that late on this, I'm happy they waited those months, because I need accurate colors on my displays.
Score: 3 Votes (Like | Disagree)
BvizioN Avatar
50 months ago
Pretty slim based on the 7 years it has taken them to put OLED into a phone after Samsung did it with the S2.

Personally, I don't expect to see mLED in Apple products for at least another 7-10 years, and they could go the way of Nokia and Blackberry by then if they keep adopting new features years after their competitors.
That's what really separates Apple from these other companies. Apple does not usually put immature technology on their products, while others rush to be first and make their products suck. Apple tend to wait until technology is mature enough for their standards Good for them. That's one of the reasons I stick with Apple.
Score: 3 Votes (Like | Disagree)
DHagan4755 Avatar
50 months ago
Apple probably wants OLED for the MacBooks as well.
Score: 3 Votes (Like | Disagree)
AFDoc Avatar
50 months ago
I have an LG OLED TV and am very happy with it. IF they can bring anything like that to their phone displays they will look great.
Score: 3 Votes (Like | Disagree)

Top Stories

apple music change forever

Apple Music Teaser: 'Get Ready – Music is About to Change Forever'

Sunday May 16, 2021 2:39 pm PDT by
The Browse tab in the Music app across Apple's platforms has started displaying a prominent teaser hinting at an upcoming major announcement for Apple Music. Under the heading "Coming soon," the headline says "Get ready – music is about to change forever." An accompanying "Tune-In Video" simply shows an animated Apple Music logo. Rumors have indicated that Apple is preparing to launch a...
m1 ipad pro early customer

M1 iPad Pro Arrives Early for Lucky Customer

Saturday May 15, 2021 11:57 pm PDT by
Days ahead of their expected launch and seemingly before official review embargoes lift, one lucky customer has already gotten their hands on the brand new 12.9-inch M1 iPad Pro. Reddit User PeterDragon50 Posted on Reddit, u/PeterDragon50 has already received their 12.9-inch iPad Pro through retailer Nebraska Furniture Mart. The Reddit user says they placed their order when pre-orders...
2021 mbp hdmi slot 3d

2021 MacBook Pro Leaks Confirm Returning MagSafe and Ports

Friday May 14, 2021 3:06 am PDT by
Apple's upcoming MacBook Pro models are expected to feature a number of major changes such as larger display options and powerful new Apple silicon chips. Among the more surprising updates to this year's MacBook Pro models is the return of three ports that have been missing from the machines for over five years. Expected to come in 14- and 16-inch sizes, the 2021 MacBook Pro models are...
Twitter Feature

Twitter's 'Blue' Subscription Service May Cost $2.99, Will Offer Undo Tweet Option

Saturday May 15, 2021 11:08 am PDT by
Twitter has been working on some kind of subscription service since last summer, and Jane Manchun Wong, who often digs into new features coming in apps, has shared details on just what Twitter is exploring. Twitter's subscription service could be called Twitter Blue, and at the current time, it's priced at $2.99 per month. There will be a "Collections" section that allows users to save and...
AirPods Lineup Not Lossless Feature

AirPods, AirPods Max and AirPods Pro Don't Support Apple Music Lossless Audio

Monday May 17, 2021 10:44 am PDT by
Apple today announced that starting in June, Apple Music songs will be available to stream in Lossless and Hi-Resolution Lossless formats, but lossless audio won't be supported on the AirPods, AirPods Max, or AirPods Pro. Apple's Lossless Audio is encoded as Apple Lossless Audio Codec files, with lossless quality ranging from 16-bit 44.1 kHz playback to 24-bit 48 kHz playback and Hi-Res...
Top Stories 60 Feature

Top Stories: M1 iMac Benchmarks, iPhone Battery Life Tips, Colorful MacBook Air?

Saturday May 15, 2021 6:00 am PDT by
Anticipation is building for the new iMac and iPad Pro models, which have started shipping out ahead of a launch around May 21. Benchmarks for the new machines are starting to come in, and the M1 chips inside of them are registering at around the same figures seen with other M1-based Macs, making for significant upgrades over previous-generation models. This week also saw some rumors about...
apple music spatial audio

Apple Music Launching Spatial Audio With Dolby Atmos and Lossless Audio in June at No Extra Cost

Monday May 17, 2021 6:06 am PDT by
Apple today announced that Apple Music will be gaining support for Spatial Audio with Dolby Atmos at no additional cost starting in June. At launch, Apple Music subscribers will have access to thousands of songs in Spatial Audio from artists like J Balvin, Gustavo Dudamel, Ariana Grande, Maroon 5, Kacey Musgraves, The Weeknd, and many others. Apple says this feature will provide a...
General Music and AirPod 3 Feature

Rumor: Apple to Announce Third-Generation AirPods and HiFi Apple Music Tier on May 18

Thursday May 13, 2021 10:32 pm PDT by
A new rumor suggests that Apple will announce the third-generation AirPods and the recently rumored HiFi, or high-fidelity Apple Music tier, on Tuesday, May 18, via a press release on its website. The new rumor comes from Apple YouTuber Luke Miani who shared the alleged exclusive news with the AppleTrack website. According to the YouTuber, Apple plans to release the next-generation AirPods...
apple music logo

Apple Music Teaser References 'Hi-Res Lossless' and 'Dolby Atmos'

Sunday May 16, 2021 4:04 pm PDT by
Earlier today, Apple Music began teasing a special announcement with the tagline "Get Ready – Music is About to Change Forever." This teaser comes amid a rumor that Apple is preparing to announce the third-generation AirPods alongside a HiFi, or lossless audio streaming tier for Apple Music on Tuesday, May 18. Now, references to "Apple Lossless," "Free Lossless," "Hi-Res Lossless," and...
tile amazon sidewalk integration

Apple Says Tile Trackers Sold Poorly in Apple Stores

Friday May 14, 2021 4:53 am PDT by
Earlier last month, Spotify, Tile, and Match (owner of Tinder), testified at an app store antitrust hearing spearheaded by the U.S. Senate. During the hearing, Spotify called Apple's App Store "an abusive power grab," while Tile said Apple uses its platform to "unfairly limit competition for its products." Now, in response to their testimonies, Apple's vice president and chief compliance...