Apple wants LG OLED displays and will pay to ensure they get them
As LG Display revs its engines to compete against leading competitor Samsung in the mobile OLED display market, new factories and production lines in order. But Apple, in the interests of diversifying its components sourcing and saving some cash for future iPhones, could just as quickly snatch those lines up for a pretty penny.
The two companies are in negotiations on an exclusive production arrangement at LG’s new E6 plant for a price of between ₩2 trillion ($1.7 billion) and ₩3 trillion ($2.6 billion). The Korea Herald reports from its sources that certain details, including quality specifications, still need to be hammered out.
“Samsung Display is the only display maker that meets Apple’s strict quality criteria for now,” said one source. “LG Display is said to be meeting about 70 percent level of the requirements, while Chinese display makers are still struggling to catch up with that of LG.”
Samsung Display is said to own 95 percent market share in the mobile OLED display field.
E6 would only be expected 30,000 panels per month at its start. Sources say that LG Display may be able to expedite the process as it has attained two advanced foundry components that have been short in supply. That could help raise the yield rate to 60,000 per month by 2019.