LG says that an OLED deal with Apple is in the works

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iPhone X
Apple is reportedly diversifying its iPhone X supply chain.
Photo: Ste Smith/Cult of Mac

LG Display hasn’t yet agreed a deal to produce future OLED displays for the iPhone, but one is definitely on the way. And, from the sound of things, it’s getting a whole lot closer.

In a regulatory filing made this week, LG noted that, “Regarding the OLED supply deal for Apple’s iPhone X, nothing has been set in detail. When anything is confirmed in detail, we will announce it, or (otherwise an announcement will be made) in a month.”

The wording is interesting because it is not the outright denial that would be expected if negotiations between the two were not taking place.

LG was seemingly prompted to make the statement after a local media outlet reported that it had already signed a supply deal, and was in the process of setting up manufacturing facilities for the iPhone X.

LG entering the Apple OLED business

Currently Samsung is Apple’s exclusive OLED supplier. However, with the iPhone X proving incredibly popular, and Apple planning to expand its number of OELD display devices in future, it is looking to take on new suppliers.

By taking on LG as a partner, Apple could break its reliance on longtime frenemy Samsung, whose agreement currently covers 67 million iPhone X units.

LG has previously supplied Apple with LCD displays. Given the company’s history of working with Apple, it makes sense that it would be a good fit as an OLED production partner. KGI Securities analyst Ming-Chi Kuo has suggested that LG is likely to supply 10-20 percent of the iPhone’s OLED supply by 2019, and 20-30 percent by 2020.

In the meantime, LG is reportedly investing heavily in OLED technology. According to Chief Financial Officer Kim Sang-don, speaking recently during an investor conference call, LG Display is expected to double the sales portion of OLED screens for both televisions and mobile devices in 2017.

Have you been impressed by Apple’s OLED displays for the iPhone X? Let us know how you think Apple’s screens measure up in the comments below.

Source: The Investor