Apple Inc. Will Invest $2.7 Billion in OLED Manufacturing Plant

Apple Inc. Will Invest $2.7 Billion in OLED Manufacturing Plant

Apple Inc. Will Invest $2.7 Billion in OLED Manufacturing Plant

Apple will reportedly tap LG as the second supplier apart from Samsung that will manufacture OLED displays for the iPhone, the 10th-anniversary iPhone the company plans to unveil this fall, according to rumors.

Apple is already behind Samsung which is now the only company with capabilities to design and mass produce OLED displays for smartphones.

Outside of competing with Apple, reports South China Morning Post, more applications for Huawei's Android smartphones will reportedly be powered by artificial intelligence and there are rumours that the Mate 10 will also sport a bezel-free display.

Apple is believed to have ordered 160 million screens from its main rival, but appears to have grown concerned about becoming overly reliant on a company with which it has had sour relations in the past. Apple's premium iPhone model should get it this year because the device will probably be priced richly enough to allow Apple to equip them with relatively pricey OLED displays while still maintaining acceptable gross profit margin levels.

Here's what this means for LG Display, Samsung Electronics (NASDAQOTH: SSNLF), and Apple. If Apple shifts some orders way from Samsung in the 2018 iPhone cycle, this could negatively impact Samsung Display's shipment performance year over year.

If LG Display can deliver, then that'd be great for it, great for Apple, and an obvious negative for Samsung's display business as it loses OLED display pricing power and unit share.

Also, it seems like Apple is to release 30,000 units iPhones with OLED Panel display in 2019. Foxconn's partnership with LG to provide for a smooth supply chain for Apple. Apple is on the list - but there are nine others you may be overlooking.

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