Earlier this month Patently Apple posted a report titled "Japan Display is shifting their business focus towards the Auto Industry and away from their Dependence on Apple." We're now learning that Apple has decided to use OLED screens in all three top iPhone models planned for next year, according to South Korea's Electronic Times - a report that sent shares in Japan Display tumbling 10 percent.
Reuters report added that "The Japanese government will continue to provide a lifeline to Japan Display, but the company has been just so slow in catching up with South Korean rivals in OLED," said Masayuki Otani, chief market analyst at Securities Japan.
Lee Won-sik, an analyst at Shinyoung Securities in Seoul to Reuters that "If Apple uses OLED for all models for next year, that could raise hopes for LG Display to take a slice, as Apple may want to diversify its sources for OLED supply."
The ETNews report noted that the top three 2019 iPhones will be OLED and may have an LCD model should they decide to introduce four models.
A second Korean report adds: "There may be the possibility of an LCD model if Apple extends the lineup. But if it sticks to the current three-model lineup, all new iPhones will come with OLED display only.
Following the debut of the iPhone X, the first OLED iPhone, last year, Apple plans to launch three new models this year -- two OLED and one LCD model. Industry watchers have predicted the two-track strategy would be maintained next year.
Apple’s ditching the LCD screen is expected to have a ripple effect within the industry. Japan’s JDI, the largest LCD supplier for iPhone, is likely to be hit hard, while another supplier LG Display is under growing pressure to beef up its smaller OLED production that is still in its nascent stage.
In the meantime, Samsung Display, the sole OLED supplier for the current iPhone, would see it as a boon since it is expected to maintain its leadership in the field for some time. Currently, the firm dominates more than 95 percent of OLED production for mobile devices.
The issue is the high price. The wider adoption of OLED could raise the phone price overall. Sources say Apple could lower the buying price of other parts like cameras and sensors by increasing order volumes rather than seeking a drastic increase in phone prices."
About Making Comments on our Site: Patently Apple reserves the right to post, dismiss or edit any comments. Those using abusive language or negative behavior will result in being blacklisted on Disqus.