LG is all set to deliver two to four million units of OLED parts to Apple for the manufacture of iPhoneX – the first OLED-based iPhone
Apple is gearing up to include LG as its second supplier of organic light-emitting diode (OLED) screens, which are used in the new iPhoneX phones. Earlier, Samsung – Apple’s only rival in the smartphone market and with whom Apple has been engaged in a legal feud for the last seven years, was the sole supplier of OLED parts. With LG’s entry, it is assumed that Apple expects to cut iPhone expenditures and its dependence on Samsung as well.
LG will supply 2 to 4 million parts to decrease Apple’s dependence on Samsung
The entry of LG as the second supplier of OLED parts will allow Apple to negotiate prices with Samsung. Diverse suppliers of OLED parts will help Apple reduce iPhoneX prices, which is now set at US$ 1,000 and is the main reason behind Apple not meeting its sales’ expectations yet. Also, LG is currently experiencing drop in smartphone sales and liquid crystal displays and needs to boost its revenue. It is all set to deliver around two to four million OLED parts to Apple and although not on a broader level, it will help them regain its status in the market to some extent.
Samsung is expected to make US$ 14.3 billion from Apple
Earlier this year, it was announced that Samsung has become Apple’s sole supplier of OLED batteries, chips, display and capacitors through its various affiliates. For every iPhone X, Samsung will be charging Apple US$ 110 that brings up its total income to US$ 14.3 billion. Given the South Korean company’s hold in the OLED market, Apple had no other choice but to depend on its rival to acquire the OLED parts for the manufacture of iPhoneX – first iPhone with an OLED display.
Apple and Samsung has been involved in a legal dispute since 2013 after the former’s founder, Steve Jobs threatened to go ‘thermonuclear’ on each rival who used the Android OS. However, following the announcement of Apple and Samsung working together to manufacture iPhoneX, both have separately stated that they have resolved the remaining matters of the legal feud.