Apple plans a multi-billion dollar investment in LG Display to ensure it can get enough OLED iPhone screens.
(CCM) — Apple is considering handing over about $2 billion to LG Display to ensure that it can buy OLED displays from the company and reduce its reliance on Samsung, according to a report in The Investor. Samsung Display currently supplies more than 95% of the OLED screens to the smartphone market, but demand for the screens is likely to rise significantly if Apple achieves its rumored goal of selling all of its iPhones with OLED screens by 2019.
The $2 billion from Apple will come in the form of an investment in LG Display's new OLED production facilities, which will be used exclusively to produce screens for Apple, according to the report. "Samsung Display is the only display maker that meets Apple’s strict quality criteria for now," an anonymous industry source said in the report. "LG Display is said to be meeting about 70 percent of the requirements, while Chinese display makers are still struggling to catch up with that of LG."
The investment could be used to build an OLED production line capable of making about 30,000 sixth-generation OLED displays each month, The Investor says. LG is also building another production facility to make OLED screens for LG Electronics, as well as some Chinese smartphone manufacturers.
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