UPDATED 15:36 EST / SEPTEMBER 14 2018

APPS

Apple reportedly taps LG to curb Samsung’s role in new iPhone production

Apple Inc. has reportedly tapped LG Display Co. to produce some of the displays for its latest iPhones in a bid to become less reliant on rival Samsung Electronics Co. Ltd.

The information appeared today in South Korean business journal The Investor, which cited anonymous sources. The news follows multiple other reports that indicated Apple may partner with LG. In June, tipsters told Bloomberg that the display maker will initially produce 2 million to 4 million screens.

The units in question are based on OLED, or organic light-emitting diode, technology. OLED displays provide better picture quality in a form factor that is thinner and lighter than traditional alternatives, mainly since they don’t require a discrete backlight to provide illumination.

Apple first included a screen based on the technology in last year’s iPhone X. This week, the company unveiled two newer models that feature OLED displays as well: the 6.5-inch inch XS Max and the 5.8-inch XS. They debuted alongside a more affordable third version dubbed the XR that comes with a traditional LCD screen.

Apple has so far sourced OLED displays exclusively from Samsung under a contract for 100 million units that the companies had signed back in 2016. The 2 million to 4 million displays that LG will reportedly supply initially aren’t much in comparison, but the number may increase over time.

Today’s leak claims that the display maker is preparing to begin mass producing OLED displays at two new manufacturing lines. According to the sources who spoke with The Investor, the manufacturing lines were brought online for a test run not long ago. Moreover, LG’s OLED technology is said to have recently passed a series of Apple quality tests.

If the report is accurate, these two developments would go a long way toward explaining the timing of the iPhone maker’s decision to partner with LG. The deal could prove quite significant on the long run not just for Apple but for the entire industry.

Besides landing LG a new source of revenue, a contract with Apple would position it as a more formidable rival to Samsung, which currently controls 95 percent of the OLED market. More handset makers will likely be inclined to do business with LG should its displays start shipping with the new iPhones.

Image: Apple

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