WSJ: it's back to Samsung for Apple, as LG struggles with a 6.5" iPhone display

WSJ: it's back to Samsung for Apple, as LG struggles with a 6.5
Apple is having a traumatic experience with the rumored 6.5" iPhone Xs Plus displays, reports the Wall Street Journal, citing "people familiar with the matter." The thing is, Apple is expecting for its most expensive 2018 phone to be a somewhat niche device that will represent only 20% of the new iPhones' production this year, so Apple thought it could go to LG to supply its large flexible OLED panel, and diversify a bit from Samsung's near-monopoly panel pricing.

LG, however, has reportedly hit production hiccups, and Apple has taken the rare step to make it come up with a third prototype of the alleged 6.5-incher that leaked not long ago. LG doesn't yet have the amount of modern production equipment Samsung has installed in expectation of huge OLED iPhone orders, and apparently can't meet Apple's stringent quality and yield targets.

The new iPhones should be ramping up production in July at the latest, so that they can be announced in September, and drop a week or two later. Thus, if Apple doesn't solve LG's factory conundrum, it may be forced to rely on Samsung for the bulk of its OLED display needs yet again. Apple is forecast to make 100 million of the 2018 iPhone crop, and half of those would be OLED models, so Samsung might soon have something to fill the idle capacity that was left when Apple cut the iPhone X display orders due to lower than expected sales for the quarter.

source: WSJ (paywall)

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49 Comments

1. AVVA1

Posts: 228; Member since: Aug 01, 2017

Im rooting for LGs OLEd on mobile phone as their panels on TV are great. Looking forward they figured it out sooner than later. Diversification of materials are a good thing to lower the cost. I hope there's no deviation from LG panel to Samsung panel if everything goes well.

42. kotan24

Posts: 313; Member since: Oct 29, 2012

If the oled panels on the Lg v30 and the Pixel 2XL are indications on how they’re gonna be I’d much prefer Samsung!

2. Hollowmost

Posts: 424; Member since: Oct 10, 2017

Samsung can handle very high demand of panels plus their AMOLED is the best on the market in the other hand LG can produce 100k or 200k panels for upcoming pixels lol

7. Clars123

Posts: 1078; Member since: Mar 16, 2015

Is anyone surprised..it was obvious this would happen the moment it was reported Apple was looking to LG. Samsung dominates the OLED market for a reason

27. Medoogalaxy

Posts: 232; Member since: May 25, 2017

Hollowmost. Do not forget that Samsung is who developed oled to the great Amoled screens from the first 2005 Samsung phone, which brought the Amoled screens which we see in the current form and is good compagnies copy Samsung. Its natural LG and others will not get to Samsung because they simply do not have the experience and the skilled engineers.

30. TitaofManila

Posts: 34; Member since: Mar 17, 2018

Hail Samsung

3. haruken

Posts: 307; Member since: Nov 06, 2013

So Apple thought they could run to the lesser Korean company because Samsung prices were too high, but now they understand why said prices are so high. Excellence and quality doesn't come cheap.

18. TitaofManila

Posts: 34; Member since: Mar 17, 2018

Lesser korean products? Wow LG produces great OLED panels (televisions) unfortunately on mobile market they havent catch up yet as they started late.

22. tedkord

Posts: 17414; Member since: Jun 17, 2009

They TVs are great, but in this particular market (mobile OLED), they are the lesser company.

4. fyahking

Posts: 1146; Member since: Jan 28, 2015

3.5in is the perfect size they say.lol

32. NateDiaz

Posts: 1089; Member since: Mar 03, 2018

Nothing was wrong with that statement at that time but guys like you like living in the past lol

8. CreeDiddy

Posts: 2253; Member since: Nov 04, 2011

Once again...Apple is keeping Samsung Semiconductor in business.

10. kkmkk

Posts: 699; Member since: May 06, 2013

samsung doesn't need apple to survive but at the same time they need them to break the quarter profits as they always do the fact is apple and Samsung hate each other but at the time they complete each other which is very odd possition to be at in business

19. CreeDiddy

Posts: 2253; Member since: Nov 04, 2011

I know that...it was a general statement. Samsung has many accounts within Semiconductor. Apple and Samsung co-existing relationship. They both need each other products and services.

12. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

How? Apple ordering displays not SoCs from Samsung. Look Apple is a large American company and no doubt maybe the worlds first trillion dollar company on paper- but the fact remains ( and I am not "fanboying" Samsung just the clear facts) is a multi conglomerate company. From defense systems, Building and construction, Home appliances, Shipping, Maritime vessel building, Displays and electronics, semiconductors etc.. these Guys do everything in south Korea and supply the whole world with things. It's scary to have one company really doing everything as you have a real single point of power & failure. However, Apple pales in comparison to Microsoft and Microsoft Pales in comparison to Samsung ( Samsung is not a trillion dollar company on paper but as a conglomerate a trillion dollar real trillion dollar company in real production and capacity. those are the facts.

16. Hollowmost

Posts: 424; Member since: Oct 10, 2017

Samsung semicon don't produce displays you idiot lol

23. tedkord

Posts: 17414; Member since: Jun 17, 2009

I amazed that you can spin that hard and not puke.

9. Sunbae-min

Posts: 135; Member since: Mar 25, 2018

Apple should look into low substandard Chinese OLED panels if it wants cheap price. That clown company is so hypocrite that it sells its iPhone utterly pricy but doesn't want to pay high price for a quality panel? Get lost man, and prepare a face of disappointment you won't find that.

15. TitaofManila

Posts: 34; Member since: Mar 17, 2018

Wow you're pure sh*t arent you? Do you even know how to run a business? Ohh maybe not coz you ask mommy and daddy for your everyday allowance.

13. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

Ha ha ha, so just pay the price you greedy hypocrites at apple.......Im loving this.....

14. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

I have said it before and I will again say it for all the "fanboys" Samsung has the capacity and the Tech that no one else has right now for now so ther is no where to go accept to them. Apple has tried this so many times (PA always post an article of how Apple will diversify from Samsung only to always recant and say " Apple is out sourcing to Samsung" again) and always has to go back to Samsung because they have the capacity. LG, Sharp,etc.. combine don;t have the capacity to meet Apples demands only Samsung does and they must play-ball with Samsung on Samsung's terms. Remember all Samsung has to do is to issue that Amoled capacity is tightening ( if the Chinese manufactures all start ordering in volume before Apple places its orders and Apple will be in a tough position having to fall back on LCDs again. Apple being smart knows it better place it orders with Samsung now. Again no on has their capacity.

17. TitaofManila

Posts: 34; Member since: Mar 17, 2018

These are mostly speculations, though, yes i agree that Samsung is currently has the monopoly for oled panels on mobile phones, this is anti competitive. We need more oled vendors aside samsung as they can charge premium which is happening because, again,they are the only vendor who can produce more atm.

24. tedkord

Posts: 17414; Member since: Jun 17, 2009

One company making superior products isn't anticompetitive.

28. TitaofManila

Posts: 34; Member since: Mar 17, 2018

Making Superior product and being the only provider is different from making superior product with different manufacturers it is anti competitive right now.

35. tedkord

Posts: 17414; Member since: Jun 17, 2009

No, it's not. Anticompetitive is buying out all other companies that make the same. Making a superior product while others are making the same product but they can't get up to your quality is not. Competing better than anyone else isn't anticompetitive.

38. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

US laws don't apply to Samsung SAMOLED as they are manufactures outside the country. Also SAMOLED as "tedkord" has said is a Samsung patented technology it is a superior display technology which Samsung worked hard on, when every one from PA to Cnet were criticizing Samsung for having over-saturated display, not life like colors, screen burn in etc.. Samsung never wavered or back down and just kept improving its tech, Now when it has the best displays in the business all of a sudden everyone is saying " well they are a monopoly break them up". Is Apple a monopoly in the US? Should we say break them up because they have one of the best designed handsets? Come on give it a break.

25. drazwy

Posts: 356; Member since: Jan 15, 2014

Well it's not Samsung's fault that they are the only ones that can do it. I like Samsung displays, but I don't like their phones. I keep going back to the to see if they get better, but they don't. Their displays are good. Very good. But their software is not good. I just switched from Samsung S8+ to a Pixel 2 XL and it's night and day as far as functionality. Things just work. From devices syncing and connections to performance. It's really night and day. Anyway, all I've heard for months is complaints about the LG displays in the Pixel 2 XL but it's really it's pretty damn good. Differences come down to picking nits.

33. TerryD

Posts: 553; Member since: May 09, 2017

What if Samsung said 'Sorry, we don't have capacity to make your screens Apple'?

36. tedkord

Posts: 17414; Member since: Jun 17, 2009

Then they'd lose a customer and make less profit. And let's be honest, it doesn't matter what display Apple uses, people will still buy it. And the truly diehard will insist its the best display there is.

39. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

@tedkord Well said. Remember when a tech CEO met with Samsung's corporate team and pulled out his iPhone and realized he might be inadvertly upsetting the Samsung team but instead they, Samsung team, were all smiles and when he asked them why they were not upset their classic line was " they(Apple) are our best customer" in other words when you buy Apple you also to a degree ( and more so with the X) buy Samsung - Open up your iPhone and see how many of the parts are made by Samsung. Again it comes down to Manufacturing capacity

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