Shenzhen Enrich Electronics Co.,Ltd

Apple has turned to LG's display division for supply, in order to reduce its dependence on Samsung. However, the report said that this strategy failed to achieve progress in Apple's plan, because the LG suffered some setbacks.

According to latest rumors, Apple plans to release several new iPhones this year, including 5.8-inch and 6.5-inch models. Both models will be equipped with OLED displays. This display can be controlled at the pixel level, resulting in better black levels and more precise power management. In addition, OLED displays tend to have better color saturation than conventional LCD (liquid crystal display) displays. The only problem is that the production of OLED displays is very difficult.

Apple has sought to supply LG for this, but there are reports that LG is facing production delays, which will force Apple to continue to use Samsung as its sole supplier. LG's problem lies in the manufacturing process, because Apple needs a smaller energy-saving display, and LG's manufacturing process can only produce larger OLED panels. According to the "Wall Street Journal" report, sources revealed that Apple also asked LG Display to perform multiple rounds of prototype production of OLED displays that may be equipped with the iPhone. This is an unorthodox practice.

Consulting company Fomalhaut Techno Solutions pointed out that Apple needed to find other suppliers because the display was the most expensive part of the whole machine. The company told the Wall Street Journal that the display "consists of approximately $97 in the total estimated cost of $376 per cell phone." If Apple can reduce the supply price of display screens, it can lower the price of the iPhone X (currently starting at $999), or provide consumers with a lower-priced lease option.

On the other hand, Apple can also get a higher profit rate. As the rumoured third new model that Apple will launch this year will be equipped with a 6.1-inch LCD display, production delays may not have much impact on the company’s earnings.