LG struggling to make OLED displays for the iPhone, again

LG struggling to make OLED displays for the iPhone, again
Just when LG managed to slide into Apple's OLED DMs, now a production snag hits its factories when the new 2019 iPhones are hitting the conveyor belts for trial batches on the runup to the fall release, reports Korean media. LG has allegedly now "temporarily halted the operation of the E6-1 manufacturing line in Paju, Gyeonggi Province, due to technical glitches."

Apparently, LG wanted to go with its own PRI encapsulation equipment on the E6-1 line, instead of the American one by Kateeva that Samsung uses, and which LG has installed in the E6-2 facility. The PRI's technology, however, was not up to par with the quality needed, and now LG will be switching to the E6-2 line which will delay mass production, tips one industry insider:


Last year, after months of testing, deliberation, and failed yield promises, LG was being fast-tracked to become Apple's second OLED display supplier, breaking Samsung's current monopoly over iPhone displays.

While Apple and LG cut the ribbon on the new production line, it was said to only be able to produce no more than 2 million panels by the end of the year. Some of these could potentially be used only for repairs of the new iPhones, too. Considering that the initial aim and the quantity that analysts predicted was twice that number, they cut LG Display's share price forecast because of the yield issues.

The E6 line in its Korean factory was reportedly cleared for production way back in September by Apple which put it into operation, hoping to get whatever yields LG can muster. Unfortunately, the number of OLED panels with the needed quality that LG's conveyor belts were able to churn out was not very large. In fact, LG might only be able to supply about 400,000 iPhone OLED panels at the time, a far cry from even the humble 2 million prediction.

LG aimed to start small but steady and try to trim its crosstown rival's chokehold on the small OLED panels industry, while the team from Cupertino is in a desperate need of at least one more OLED screen supplier to avoid the monopolistic prices that Samsung is charging. With the help of Apple's credit lines, LG should have quickly been able to ramp up production but today's production snags speak volumes about Apple's OLED diversification goals.

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12 Comments

1. Phonehex

Posts: 763; Member since: Feb 16, 2016

Sammy should charge Apple the "Apple tax". Let them taste their own medicine.

2. AbhiD

Posts: 803; Member since: Apr 06, 2012

Yeah, very very smart of you. Now i know how some businesses end up being bankrupt

4. sgodsell

Posts: 7368; Member since: Mar 16, 2013

I think these stories are great, because it gives Apple another excuse to fall back on, especially when their sales have been tanking. And it looks like their sales will continue to tank.

9. iloveapps

Posts: 855; Member since: Mar 21, 2019

You’re really fascinated with apple profit, why not look on your beloved Samsung mobile?

10. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

He should look at his own personal income (or maybe he does, because - although I doubt it - he chose to invest in Samsung shares instead of Apple and that is why he's bitching).

6. tedkord

Posts: 17357; Member since: Jun 17, 2009

It usually involves having Donald Trump at the helm.

3. kiko007

Posts: 7493; Member since: Feb 17, 2016

You really don't know how Apple works if you think trying to shaft them is a good business strategy.

8. chris2k5

Posts: 249; Member since: Nov 17, 2012

Samsung would go bankrupt. The CEO would be begging for coins on the streets of Seoul the next day

12. oldskool50

Posts: 1550; Member since: Mar 29, 2019

No they would not. Every OEM shafts someone. They all have and are doing it in one way or another. The fact is, you can't be shafted when you are sitting and working out a deal together. You don't have to pay for a bad deal, unless ou have no choice. Apple had to take a bad deal from QCOM, becaus ethey basically have zero choice for 5G. Just like you have to pay Apple $500 to replace your iPhone X when only the glass is broken, because they are the only one with an Phone and you have no choice for the most part. But I don't see you complaining about how Apple sticks it where the sun don't shine.

11. oldskool50

Posts: 1550; Member since: Mar 29, 2019

Well they do. Look how much they paid for the iPhone X panels. based on the numbers, the price of those panels were roughly $50. Apple paid almost $80 each for them.

5. Alcyone

Posts: 395; Member since: May 10, 2018

The only people to ever possibly get the shaft would be the consumer. Worst case scenario being defective panels end up in the hands of the consumer.

13. shm224

Posts: 288; Member since: Mar 19, 2015

> ... Cupertino is in a desperate need of at least one more OLED screen supplier to avoid the monopolistic prices that Samsung is charging. ... I wonder if Apple is lobbying the FTC to initiate antitrust investigation on this, as they did on QCOm.

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