Another Apple rival will reportedly help build the iPhone in 2018

  • Another Apple rival will reportedly help build the iPhone in 2018

Another Apple rival will reportedly help build the iPhone in 2018

Because Samsung holds expertise and know-how in that department, it's only safe to assume Apple has lost its bargaining power.

The massive spike in profits was predominantly driven by impressive sales of the South Korean company's latest Galaxy S8 smartphone - which outsold its predecessor, the S7, by 15% - and an increasing demand for its memory chips for sophisticated devices. So these OLED displays can be used in the upcoming iPhone 8.

Samsung's pole position in smartphone-use OLED displays has served it well as more smartphone manufacturers, particularly for their higher-end smartphone models, adopt the technology. And now a July 28 report from The Korea Herald says Apple will invest $2.7 billion "in LG Display's (NYSE: LPL) OLED production for smartphones". In fact, Apple seemingly depends too much on Samsung, which is probably the sole provider of the iPhone 8 OLED screen.

The deal with LG, reported by analyst Ming Chi Kuo, comes just days after stories emerged of Apple working on its own OLED screens at a special facility in Taiwan.

9to5Mac shared the details of a note from Kuo over the weekend, who believes that Apple is "committed to having LG Display geared up for its OLED iPhone display business in 2018".

"Even though [LG Display] may likely start off with minimal initial penetration in 2018 (we estimate no more than 4%-6%), the effort, with the full commitment of both Apple and [LG Display], will help [LG Display] mature during the process and steadily gain supply share from 2019 onward", Kuo writes. With the partner ship of LG, Apple finds a secondary resource for the OLED panels. If one supplier, for whatever reason, fails to deliver, Apple can still supply product by leaning more heavily on others.