Apple is reportedly considering a deal with LG for OLED screens to help diversify the supply chain beyond the main supplier Samsung. The Cupertino, California-based company may invest $1.75 billion to $2.62B billion in LG’s new OLED production lines to keep those lines dedicated to iPhone screens.
LG expressed plans for a $3.5B investment in OLED production with the E6 factory expected to start production in 2019. The limited number of OLED producers and the longer production times can cause supply backlogs, a problem Apple could avoid with the dedicated lines and multiple suppliers, according to Seeking Alpha.
OLED technology is used in high end smartphones today, such as the Samsung Galaxy J3, the Gionee S6, and the Motorola X Force. Supporters of the technology praise its high contrast/deep blacks and potential thickness and power consumption advantages.