Last year it was reported that Apple had invested $2.7 billion (or 3 trillion Korean Won) in LG Display's organic light-emitting diode (OLED) plant to secure supplies for future iPhones. The move suggested that the Cupertino-based giant was looking to land a second supplier of the OLED panels, which would reduce its dependence on Samsung. Now, a Bloomberg report has claimed that Apple's investment will finally bear fruit and it will reportedly land an initial stock of 2-4 million units of the displays. Citing a source, who requested not to be identified, the move will likely help Apple to reduce the cost of the iPhones with OLED panels as it will give the company an upper hand while it negotiates with Samsung, which has been the sole supplier of the OLED panels for the iPhone X.
According to the report, the deal between the two tech giants will benefit LG as well as Samsung. While Apple will be able to buy large volumes of displays from LG for next year’s iPhones, LG will get a fresh source to generate revenue after it is reportedly battling a drop in the price of liquid crystal displays. Sources also told Bloomberg that the first OLED screens from LG will reportedly be used in only one model of the new iPhones slated for release in September. Also, the shipment is subject to two layers of approval, the first of which is expected around July.
The development comes two months after a report claimed that the Apple-LG partnership hit troubled waters after the South Korean company was reportedly facing manufacturing issues for smartphone OLED panels. Due to the issues, the company fell behind in its production schedule. It was unclear if LG could recuperate from the delay and deliver in time for the new iPhone launch later this year,, when Apple is expected to unveil three new smartphones.