iPhone 12 screen supply ‘heralds a new era of competition in OLED’

A new report says that the supply of Apple’s iPhone 12 panels “heralds a new era of competition in OLED.”

” A new Nikkei Asian Evaluation report keeps in mind how LG is looking to Apple to assist “chip away” at Samsung’s dominance of the OLED panel market. From the report:

Apple chose to equip this year’s lineup of iPhones entirely with OLED panels. LG Display, which has endured 6 consecutive quarterly operating losses, is anticipated to fulfill much of this additional demand. The business will provide 20 million OLED panels this year, or 5 times the volume from the previous year, a source said.

LG’s arrival declares a new era of competition in OLED, the start of a battle for market share like the one that has actually dominated in older liquid crystal displays.

LG CFO Suh Dong-Lee seems positive LG’s finances will improve in the second half of 2020. As noted, LG has taped six successive quarterly operating losses, so is in desperate need of a change in fortune. As Nikkei notes, Samsung has previously (and still does) supplied most of the OLED panels for iPhone, nevertheless, its order number rose only slightly to around 60 million units for this year. Currently, in the small and midsize OLED panel market, Samsung holds a market share of more than 80%.

One kept in mind the reason behind the shift from Apple to a more varied OLED supply pool is steep charges it sustained to Samsung earlier this year after it failed to fulfill its obligated target of panel purchases, likely driven by lower-than-expected iPhone sales. The $950 million payment was enough to turn Samsung Display’s Q2 from a loss-making to a profitable quarter.

As one specialist noted, such a plan is between the 2 is only possible since of Samsung’s “virtual monopoly on OLED materials”. Apple apparently tried to increase its reliance on LG in 2015, but the company couldn’t deliver:

Apple has actually long sought other OLED suppliers. LG Show panels appeared in some iPhone 11 designs last fall. But in the summertime prior, LG Display stopped working to enhance the production yield rate of panels and fully meet shipment targets, an incident that apparently infuriated Apple’s procurement supervisor. Afterward, the South Korean company handled to enhance its yield rate of OLED panels, several suppliers state.

Plainly, provided the massive payments made to Samsung both this year and the year prior to, it is definitely in Apple’s benefits to try and bring back some balance to OLED production and supply in smartphones. To this end, Apple is likewise apparently tapping Chinese supplier BOE for OLED supply in next year’s smart device.

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