LG gets into Apple's iPhone OLED display supply chain, after months of yield failure

Posted: , by Daniel Petrov Daniel Petrov

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LG gets into Apple's iPhone OLED display supply chain, after months of yield failure
LG has apparently started mass production of OLED screen panels for Apple's respective iPhones, 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, to no avail until now. 

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 this year, tips Korean media today. That's a far cry from even the humble 2 million prediction last month but with the help of Apple's credit lines, LG should quickly be able to ramp up production.

LG aims 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. The Korean analysts claim that Apple's supply contract should bring LG Display the equivalent of $90 a panel, though, which mounts up to Samsung's price, so in the end, Apple may gain nothing but diversification from the OLED contract with LG.

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