OLED iPhones may be here to stay, Apple tipped to front LG $2.7 billion for a supply line


LG might be keeping mum on exactly how much may Apple be fronting it for its giant investment in OLED display production, but industry sources are quickly swooping in to fill the void with numbers, as usual. Previously, they speculated that Apple may be responsible for $1.7 billion of the $8.5 billion total OLED panel-making bill, but now they up the ante with a cool billion more.

The $2.7 billion sum is said to be an advance payment by Apple for securing a production line dedicated entirely to iPhone displays, starting in 2019. Rumor has it that the 2018 Apple handsets might also all land with OLED screens, though these are likely to be supplied mostly by Samsung still. With a logistics chain master like the CEO Tim Cook at the helm, Apple is apparently trying to diversify its suppliers, even for a component that currently is a 95% market monopoly of Samsung. 

Apple is thus set to secure at least 45,000 units of mother glass for 6.5th-generation OLED panels a month, which can be cut into quite a lot of iPhone displays. It's a win-win situation, as LG gets to offset some of the risks related to such a huge capital outlay, while Apple gets to diversify supply, and ensure a steady stream of OLED panels that apparently are a big part of its vision for the future of iPhones. Where does that leave Google, which was rumored to invest nearly a billion in LG's display-making business to secure its own switch to OLED, remains to be seen.  

source: The Investor

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30 Comments

1. 99999

Posts: 142; Member since: Jul 25, 2017

iPhone's don't need these advanced tech and specs. The logo only matters to their EyeFlocks. Iphone users are not that smart nor techies, so let them have 2010 features. Still Amoled is better, and let's not forget SuperAmoledPlus is still on reserve. Rich vibrant colours are better than natural colours.

4. brazuca

Posts: 26; Member since: Dec 12, 2016

Of couse it does need advanced tech and specs. Why do you think iPhone is always among the best smartphones year after year?

9. ibend

Posts: 6747; Member since: Sep 30, 2014

Among the best? lets see what iPhone 7 have... - Average camera that can't even beat S7 camera - Low resolution LCD screen - Slow charger, even some low-end has faster charging speed - Small battery and average battery life - Really bad screen-to-body ratio - Boring design - Fragile screen (https://youtu.be/8i4R5xzodfQ) - No 3.5mm Jack..

17. RebelwithoutaClue unregistered

Some comments on your statements - The camera is anything but average and is as bit as good as the S7 camera, don't depend on the DX0 ranking that much - Not low but lower resolution, which equals very fluent game play (fps) - battery (especially in the 7+) is only a bit smaller, but outlasts phones with much bigger batteries - design is relative, I find it as beautiful as many others out there - one of the best (if not the best) performing SOC (cpu/gpu) out there - the best performing storage speeds out there So yeah it's among the best phones out there. This is not accounting for OS itself since that's highly subjective. So I am leaving that out of the equation.

25. brazuca

Posts: 26; Member since: Dec 12, 2016

- Average camera that can't even beat S7 camera Average? It scored 86 in DxOMark, 2 points less than S8, that doesn't seem average to me. - Low resolution LCD screen You don't need a hi resolution screen to see the content in a small display. - Slow charger, even some low-end has faster charging speed That's is true, I'm don't know how come Apple hasn't implemented this yet. - Small battery and average battery life Small battery, yes, but average battery life is not true. Among flagships it is at least above average. - Really bad screen-to-body ratio That's true. - Boring design It's minimalistic, there is nothing boring about it, it is a matter of choice - Fragile screen Galaxy S8 also has fragile screen, it is glass... - No 3.5mm Jack.. Eventually the 3.5 mm jack would have to go...

28. Michigan

Posts: 246; Member since: Nov 19, 2016

yeah iPhone 7 getting handed it's @ss by OnePlus 5 everythingapplepro on YouTube.haha.#9

11. trojan_horse

Posts: 5868; Member since: May 06, 2016

"Why do you think iPhone is always among the best smartphones year after year?" Any awards to back that up? Or having the approval of the majority of tech bloggers?

13. sgodsell

Posts: 7423; Member since: Mar 16, 2013

BS. Apple's iPhones for years have not had top specs. They have had top prices, but NEVER top specs. No competition flagship has had such a low resolution display as the iPhones, like the iPhone 6, 6s, and 7. Even the iPhone 7 plus display today can be found on $200 competition smartphones, both in size and resolution. I know Apple and some of its zealots for years have been saying that QHD is overkill and a waste. However the Android competition has been using QHD for years. Some are going to even higher resolutions displays. This is great for VR, which is another thing not supported by Apple. But that is understandable especially when Apple is dropping Imagination PowerVR GPUs. Here is something to think about. If Apple had the fastest mobile GPUs on the market, then why would Apple drop them? Yeah, we already know Apple never had the fastest GPUs in their iPhones. http://kyokojap.myweb.hinet.net/gpu_gflops/ Even Apple's LTE is behind the competition. The iPhones 7 have their LTE capped at cat 9. Yet last year's flagship devices were starting at cat 11. This year's competition devices are up to cat 16 LTE (gigabit). Apple still doesn't have USB 3.1 transfer speeds running out of its proprietary lightning port. Yet the competition smartphones had that last year. You don't have to look too hard to see that Apple has been trying to play catch up for years, and has never caught up in today's world. Apple is up their because if you want an iPhone, then you have no choice but to pay whatever Apple charges. It's not like we can see other iOS hardware competition, especially when iOS is only found on Apple's own hardware. If Apple sold their iOS OS to other OEMs, then the iPhone 7 would never get a flagship price. The Android OEMs could easily slash that price by a mile.

24. Lumia_Luigi

Posts: 173; Member since: Mar 22, 2017

90% of those Android displays are calibrated terribly. Apple is constantly at the top of accurate displays on their devices.

16. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Question, when was the last time an iphone won an award. The last one I remember by heart was the iPhone 4, rreceiving an award for design. I don't know of any afterwards. Yet the S5, S6, S7 and S8, Note 5 and 7 all got awards on design and more. Apple isn't a leader anymore. They are a follower. Actually they always have been.

26. apple-rulz

Posts: 2178; Member since: Dec 27, 2016

"Iphone users are not that smart nor techies, so let them have 2010 features." Please define smart and techies. What credentials are needed? I'm actually curious about the requirements needed to be considered a techie.

27. BuffaloSouce unregistered

Awww did the little troll get triggered?

29. Michigan

Posts: 246; Member since: Nov 19, 2016

shouldn't talk when you are living in the past what the hell is LCD.#26

2. darkkjedii

Posts: 31269; Member since: Feb 05, 2011

Well duhhh. Why would they not be here to stay? Apple knows it's time for that change.

3. Awalker

Posts: 1981; Member since: Aug 15, 2013

That's a weird way to phrase it. The industry was already moving in that direction with or without Apple.

5. Lumberjack

Posts: 306; Member since: May 04, 2017

First Pixel, now iPhones.. Choosing LG over Samsung.. Sounds LG's oled is better

6. Awalker

Posts: 1981; Member since: Aug 15, 2013

They may not want Samsung to have a monopoly on OLED.

18. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

To late for that. Samsung is 95% of OLED production.

10. ibend

Posts: 6747; Member since: Sep 30, 2014

It's not better.. just cheaper.. Even LG didn't use their own OLED for their G6.. Xiaomi also use LG's OLED, looking from their pricetag, we know they'll use the cheapest OLED they can find

22. foreverNOOB

Posts: 166; Member since: Jul 07, 2017

Lg's oled tv been better than Samsung ones

19. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

YHow long have you been a Samsung hating shill? Apple has always used displays from LG and Sharp in every iPhone that have ever made. They stopped using Sharp, only because Sharp is out of business and purchased by Foxconn, which will becomes Apple supplied in about 2 years. Stop hating on Samsung fool. Because the iPhone would really be more of an overprice POS if it wasn't for Samsung.

7. flavius22

Posts: 218; Member since: Aug 23, 2015

When you get too jealous of Samsung ascension that you cut your index finger

8. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Thought the industries moving to this tech anyways? Struggling for a article PA?

12. trojan_horse

Posts: 5868; Member since: May 06, 2016

Slow day, slow news.

14. 99999

Posts: 142; Member since: Jul 25, 2017

Not struggling, but Lg and Samsung perhaps don't want to sell their tech to crapAple ?

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

OLED is here to stay because of the hard work and money spent by Samsung to push OLED to be equal or better than old school LCD. LG however, the quality of their displays are not as good as Samsung, but hopefully that will change. I can't wait to see the over-saturated colors and see how the fanboys react. Because they blasted Samsung for it even though Samsung SAMOLED panels have always allowed the benefit of setting them to be more natural color. The facts always allude fans. Lets see what happens when they get them and can't change anything. Because we know, that's Apple way. Its the way they want, even though you pay for it. The beauty of Windows and Android.

21. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

"OLED is here to stay because of the hard work and money spent by Samsung to push OLED to be equal or better than old school LCD. LG however, the quality of their displays are not as good as Samsung" Agree with your statement here. I remember people just bashing on Samsung and its Amoled display when it was introduce. "Burn in", "Over saturation", "too un-life like colors", "screen bleed" even "it will give you eye cancer." others loved it and saw it as the future for all display standards and Samsung undeterred forge ahead and made improvements upon improvements. Now here we are after Samsung and LG poured tons of money and R&D into OLED Apple is going to make the switch - Now what will all the Samsung Oled Bashers say? Well, Apple got OLED right? Apple was waiting for the Tech to mature? Nonsense. Apple is a Business and OLED cost were to expensive but now with prices reduced they will add it to their device. That's fine thats what a smart business does but -lets give Credit where credit is due Samsung ( and LG) did a heck of a job with their innovative displays technologies.

23. foreverNOOB

Posts: 166; Member since: Jul 07, 2017

LG oled tv better than Samsung.

30. pendragon0202

Posts: 164; Member since: Feb 23, 2015

LG oled is better than Samsung in large panels (TV and commercial displays). Althogh LG is increasing their small screen capacity, it will take few years, not to mention technological hurdle in terms of matching Samsungs know how in high yields and price edge. One of the reason we have been hearing this and that government backed Chinese companies and Japanese display companies such as JDI, Sharp and Sony will be catching up oled soon for last few years but Samsung still commands 96 percent market share and currently building largets oled factories in the world with new generation oled lines. It is one thing to produce prototypes in labs, (Sony was actually pioneer in oled than Samsung with first working screen) but it is even more challenging to mass produce with hih yields at excellent price point like Samsu ng.

20. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

For years we always here that Apple is investing billions with another firm to eventually cut ties with Samsung but as always the case when its time fro the rubber to meet the road Apple comes back to Samsung because all other OEM's combine don't have the capacity Samsung has. Again the name of the game is capacity, which LG, Sharp TSC etc.. don't have. I'm gonna bet ( and I could be wrong) 2019 LG will run into quality issues and capacity issues and Samsung will be called back to fill the bulk of the orders. But Time does not stand still either by the time these Displays are produced for Apple both Samsung and LG will have either quantum dot or Super Super quantum Amoled displays on their devices that will win display of the year awards and hailed by everyone as the best. As for the comment of where does this leave Google, I bet that we will hear Samsung stating that OLED display production is tight for the year and if a vendor did not put in orders will have to wait for the next cycle - meaning Google went to Samsung for the Pixel displays and Apple wont be able to get the volume of displays it needs. we get the same scenario every year

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