LG’s Display division will soon become Apple’s second supplier of OLED displays for an upcoming iPhone model, according to a report from Bloomberg.
LG is reportedly set to provide Apple with two to four million OLED units, a small amount compared to what it gets from current supplier Samsung.
However, Bloomberg notes that the agreement with LG will help Apple reduce its dependence on Samsung for the key iPhone components. Further, this would give Apple leverage in price negotiations with Samsung over future OLED display orders.
Currently, the expensive OLED displays are a key reason why Apple’s iPhone X carries an expensive $1,319 CAD price tag, and has contributed to an underperformance in sales. LG, meanwhile, is facing a slide in the price of its liquid crystal displays, making a new arrangement with Apple particularly beneficial.
“Securing a second supplier for OLED screens is crucial for Apple as it will allow the company to reduce its reliance on Samsung, which is currently the sole supplier,” Jerry Kang, a senior principal analyst at IHS Markit, told Bloomberg. “At the same time, it will help accelerate a broad adoption of OLED screens. More suppliers means more volume, and in turn, lower pricing.”