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Apple will soon have a second supplier of organic light-emitting diode displays that carry iPhones high-end, according to people with a good knowledge of the subject, step Key to the US business initiative to reduce the costs of phones and their dependence on Samsung .
The South Korean company LG Display will initially provide between 2 million and 4 million units, a small number compared to Apple's sales, while continuing to work on the Increased capacity, says one of the speakers. , who asked that their identity not be revealed because the case is private.
This, however, will help Apple to have more influence in price negotiations with Samsung, the only provider of OLED screens for the iPhone X and main. rival Apple on smartphones.
The cost of this component is the main reason why the price of the iPhone X part of a thousand dollars and sales have not met initial expectations.
A successful supply agreement will help both Apple and LG. The Cupertino, California-based company could buy significant volumes for LG's iPhone model next year, while it is trying to counter a decline in smartphone sales.
LG needs a new source of revenue as it faces a lower price of LCDs.
"Securing a second supplier of OLED displays is crucial for Apple as it will allow the company to reduce its reliance on Samsung, which is currently the only provider," said Jerry Kang, senior badyst at IHS Markit.
"At the same time, it will accelerate the overall adoption of OLED displays – more suppliers mean more volume and, in turn, lower prices."
LG's first OLED displays will be used in a model of the new iPhones scheduled for launch this year, according to people. LG wants to provide all the screens for this model of Apple, although it is not clear if it can still achieve this, said one of the people.
The shipment is subject to two levels of approval, the first of which is expected around July, according to the people.
Apple and LG Display have declined to comment
Apple plans to launch this year a trio of smartphones including two devices with OLED screens, reported Bloomberg News this year.
The last measure does not indicate that Apple aims to adopt OLED screens for all of its iPhones next year and that it has more to do with the diversification of its suppliers, said one of the participants.
LG Display is investing billions of dollars in next generation technology, which offers more accurate colors and a slimmer structure than LCD screens.
But he is lagging behind Samsung in signing an agreement to provide screens for Apple's OLED iPhones, while maintaining momentum in the development of larger screens.
Apple is also in talks with the Chinese company BOE Technology for the supply of OLED displays for iPhones, reported Bloomberg News in February.
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