Supply chain reports have surfaced this morning that cover Samsung and LG Display winning the majority of 2020 OLED iPhone displays orders and LG Innotek and others gaining camera module orders this week from Apple.
The first Korean supply chain report notes that It has been decided that Samsung Display and LG Display will supply flexible OLED panels that will go into Apple’s next iPhone. It is understood that they have started making preparations for production as orders from Apple were recently sent out. All models of Apple’s next iPhone that will be launched this fall will be mounted with OLED panels.
According to relevant industries, Apple is planning to mount 5.4-inch, 6.1-inch, and 6.7-inch OLED panels on its next iPhone and it recently sent out orders for its 6.1-inch model. As a result, relevant companies that manufacture components that go into 6.1-inch OLED panel have started making necessary preparations.
A representative for the industry reported that Apple will first focus on 6.1-inch panel and then 5.4-inch and 6.7-inch panels afterwards.
Samsung Display and LG Display will supply 6.1-inch OLED panels while Samsung Display is the sole supplier of 5.4-inch and 6.7-inch OLED panels.
The 6.1-inch panel will be manufactured as an ‘add-on’ type that attaches a touch sensor onto an OLED while 5.4-inch and 6.7-inch panels will have touch sensors integrated into them. This will be the first time Apple is using a display with a touch sensor integrated into it.
The report notes that Samsung Display developed “Y-OCTA” technology that integrates a touch sensor into an OLED display and succeeded in supplying its OLED display panels with touch sensors integrated into them to Samsung Electronics and Apple. Because the technology does not have to use a separate film, it can make displays thinner and improve one’s production cost. Patently Apple reported on this possible development back in April and late-November 2019.
It is heard that Samsung Display appealed to Apple about these advantages and earned orders for 5.4-inch and 6.7-inch OLED panels.
Although LG Display also possesses the technology, Samsung Display is ahead of LG Display in production capability and experience.
The 6.1-inch OLED panels will be supplied by both LG Display and Samsung Display. It seems that Apple decided to use add-on type for the 6.1-inch model in order to diversify models in price and performance and stabilize supply and demand at the same time and chose LG Display that can manufacture such panel as a supplier in addition to Samsung Display.
This is the first time when all models of Apple’s iPhone will be mounted with OLED panels. After using OLED for the first time in 2017 for one of iPhone X’s models, it once again used OLED for two models of iPhone 11 Pro last year.
LG Display’s next moves especially are going to be noteworthy. After going through many trials, it was able to supply OLED panels to Apple last year. Although it entered the market later than its initial expectation, it is meaningful from a standpoint that it has secured Apple as its customer for its small and medium-sized OLED business in which LG Display is particular weak in.
It is heard that LG Display supplied 4 million to 5 million OLED panels to Apple last year. Its goal for this year is to supply 20 million panels. Its performance for this year will be interesting to watch as its transaction with Apple can be a steppingstone for it to expand its small and medium-sized OLED business.
In other iPhone news, it’s being reported by Digitimes that LG Innotek, Sharp and O-Film share camera module orders for upcoming iPhones.
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