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

Sunday July 30, 2017 6:16 pm PDT by Eric Slivka

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.

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.

Tags: KGI Securities, Ming-Chi Kuo, iPhone 9

Top Rated Comments

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DHagan4755

31 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/

Rating: 6 Votes

mistasopz

31 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.

Rating: 5 Votes

X--X

31 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.

Rating: 3 Votes

BvizioN

31 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.

Rating: 3 Votes

DHagan4755

31 months ago

Apple probably wants OLED for the MacBooks as well.

Rating: 3 Votes

AFDoc

31 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.

Rating: 3 Votes

jermwhl

31 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.

That's a pretty bold guess, stating "EVER". OLED is making headways, just like LCD did with Plasma. Less power consumption, better blacks, slimmer designs, blah, blah, blah....it just makes sense to go with OLED. mLED is just too far off in adoption/development to pass right over OLED. OLED is the best logical course for Apple if it is going to invest so much in displays for its iPhone, why not implement it in other devices as well. Especially since they pride themselves on "gorgeous displays".

https://www.macrumors.com/2017/07/28/apple-investing-billions-in-lg-for-oleds-report/

I kinda thought this article made it pretty obvious that Apple was diversifying OLED.

Rating: 2 Votes

nia820

31 months ago

LG? No thanks. LG doesn't have the best track record with displays.

Rating: 2 Votes

jermwhl

31 months ago

But there are a plethora of caveats...
[doublepost=1501473934][/doublepost]

I think the link you're indicating that you provided is more specific to using LG as a future supplier for the iPhone for OLED, As well as the current article in this thread regarding the iPhon . It's very possible I could be wrong that OLED might make its way to the MacBook, but I still doubt it. I think OLED has matured a lot and it really depends if suppliers can meet Apples demands for enough units for MacBooks. And yes, I do agree that micro LED is yours out for advancement , but the technology I believe exist is strong a possibility if Apple chooses to opt for this route taking into effect if Micro-LED is ready for mass production and supplier relations.

The link I provided should've been in a different posting, it was directed towards the posting of this article, rather than at you specifically. It was just meant to say Kuo's analysis was kind of obvious, based on the linked article, in my opinion. Sorry for the misunderstanding.

Rating: 1 Votes