Apple's reach for new screen supplier hits hurdles

James Marshall
April 20, 2018

This year, Apple will reportedly have three iPhones to launch in September, two of which will have OLED displays.

As 9To5Mac reports, following the launch of the iPhone X previous year, Apple has been trying to get LG on board as a second supplier of OLED panels for the 2018 iPhones. The OLED displays Samsung supply for the iPhone X cost around $97 per unit, In order to reduce production costs in the future, Apple signed a deal with LG to source additional OLED displays, but it looks like LG is struggling to meet demand according to reports this week.

Although the iPhone is an Apple product, inside you'll find components from an array of different manufacturers. Having a second supplier in LG would give Apple leverage in those costs, and possibly allow it to bring the price down slightly for consumers.

It seems that plan to expand its manufacturing pool might not be working out as well as Apple hoped. People familiar with the matter told the Wall Street Journal that the South Korean firm has been hit by manufacturing problems.

For instance, the LG-made OLED displays on the Google Pixel 2 XL were criticized by many owners who found several faults ranging from excessive screen burn-in to a noticeable blue shift.

Assuming this is true, then LG Display doesn't have very long to nail production down. iPhone mass production typically begins in July, and at that point, Apple is going to have to decide whether or not to move forward with Samsung as its sole supplier.

Apple's desire to diversify its supply chain will help the company minimize risk (especially when your primary supplier is also your top competitor) and put it in a position to better negotiate on component pricing.

Other reports by Click Lancashire

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