Monday, 10 Dec 2018

LG with production problems: Samsung could 2018 Exclusive supplier of OLED displays

| 19:22 | 0 comments

Hoping to win orders for the next iPhone generation, LG Display has dramatically increased its production capacity for OLED displays. Apparently, this huge increase was too big a challenge for the manufacturer. So reports that Wall Street Journal production problems that put the company in default. For Apple, this would mean that this year, you have to rely completely on the expensive Samsung displays.

Samsung remains for the time being exclusive supplier?

One of the reasons for the high selling price of the iPhone X is the cost of the Samsung produced OLED screen. The latest estimate states that Samsung charges Apple around $ 97 per display. Apple’s bargaining position was weak as Samsung was the only company that was able to produce the displays in sufficient quantities to the iPhone manufacturer’s high standards.

With a respectable investment from Apple in LG’s production equipment, the problem should be solved. LG would have come on board as the second supplier for this year’s iPhones and would have also served as a lever for negotiations with Samsung on the occasion. However, according to the latest reports, this plan will not work. So LG’s manufacturing problems should have led to lag behind the schedule.

Although LG is the leading manufacturer of the large OLED panels used in televisions, it is currently failing to implement small smartphone displays. Apple is even said to have already commissioned a third test production at LG to solve the problems. Normally, industry rarely goes beyond a second test production.

Decision pending

The decision has not yet been made whether Apple trusts Samsung completely this year again. Accordingly, the opinions of analysts are currently shared. A little hope sprinkles the investment firm Susquehanna, which still assumes that this year Apple will receive 20 percent of the required OLED displays from LG.

Apple does not have too much time to make a decision. Mass production of this year’s iPhones is expected to start in July and Samsung will need some lead time to calculate its own production schedules.

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