Apple Reportedly Pays $2.7b To LG For OLED Panels, Thereby Gradually Ditching Samsung

2019 is around the corner and Apple inc are already making plans , preparation and toward it as they invested $2.7 billion in advance payment to the Korean display company LG for the production of OLED panels for its iPhones, and they are shown how ready they are by making the advance payment to the LG.

According to report, with the advance payment made to LG , the OLED production will be 45,000 units of the sixth generation OLED Panels which will be produced monthly and Apple has already placed an order of the panels. Samsung had been their  only and exclusive supplier but it seems now  like  Apple wants to expand its portfolio by not making Samsung their only suppliers of the OLED panels. This payment therefore shows that LG is a major OLED competitor and the deal came as a shock for the Galaxy S8 makers even though Apple still relies on Samsung for the upcoming iPhone 8 which is expected to launch sometime around September 2017. That would be the iPhone’s 10th anniversary and it is expected that the iPhone 8 or iPhone X (as some say it might be called) would be announced to mark the milestone.

Report also have it that “With the renewed partnership with LG, it’s long-time LCD partner, Apple has secured a secondary supplier for the crucial OLED panel, while the Korean partner can reduce risks from the huge initial spending on beefing up its OLED production,” Apple has secured a secondary supplier of OLED panel  and they has have also reduced the risk of high initial spending on the OLED panels as they has renewed their partnership with  LG.

LG has shown how reliable and business minded they can be and have shown their potential when it comes to delivering the best in OLED panels as Apple are not their only investors as Google also invested $900 million in OLED production for its first OLED smartphone.

With the huge and advance payment payment made by Apple it is presumed that Apple will be making a change to OLED display for its iPhones come 2019 , no report has explained why Apple struck a deal with LG when it already had Samsung which controls about 95% of  mobile OLED panels market. We are in for a another surprise come 2019 for we don’t know what exactly Apple’s plans are but all we have to do is keep our fingers crossed and hope for the best.