Samsung and LG in 2018

Samsung and LG in 2018

By Imran Ashraf 

Prior to the lack of supply on Samsung's organic screens, Samsung sought to help LG. It is reported that this year LG is expected to Apple supply 15 million OLED screen, by the news of the supply of Apple's stimulus, LG's organic screen production technology is gradually being improved, while LG shares rose sharply.

In 2018, Apple Computer of the United States plans to allow LG Display Company of South Korea to provide organic screens (OLED, organic light-emitting diode screen) and to change the abnormal state of supply of a Samsung monitor company. According to the latest news from foreign media, LG will supply 15 million screens to Apple this year for the big screen version of iPhone X.

LG to Apple supply organic screen, is not news. LG is Apple's long-term supplier of LCD screen, but due to the organic screen has not yet mass-produced, LG was unable to supply organic screen in 2017. Before the news that Apple has provided LG part of the funds for the construction of organic screen production line.

According to the South Korean media, "the latest report, in 2018, LG Display Company will supply 15 million organic screen Apple, the size of 6.5 inches.

It is reported that Apple this year will launch two versions of the organic screen iPhone (whether to continue using iPhone X models can not be confirmed, but is expected to continue to use the bangs design), the screen size was 5.8 inches and 6.5 inches. Samsung monitor company will be responsible for 5.8-inch screen supply, LG is responsible for 6.5 inches.

Prior to Taiwan's Kyowa Securities analyst Guo Ming-tao predicted that Apple will launch a total of three new phones this year, in addition to the above two organic screen, but also includes a 6.1-inch LCD screen mobile phone.

LG's shipments also reflect the total output of Apple's 6.5-inch organic screen phones this year, which is well below 5.8 inches. In the past year, Samsung Display Company supplies up to 10 million organic screens per month to Apple.

In December last year, in the face of media coverage of the supply of organic screens to Apple, LG said in a regulatory report that it has not yet finalized all the details and that the news will be released to the media.

In the organic screen area, LG also has considerable technical reserves. However, the company focused on the development of large-size organic screen, is the world's largest manufacturer of organic screen TV. This layout led LG in the field of mobile phone organic screen at a disadvantage.

Last year there was news that LG could only supply organic screens to Apple as early as 2019. However, according to the latest news from South Korean media, LG's production and delivery time will be advanced.

In the field of mobile phone organic screen, Samsung Display Company is currently the exclusive monopoly in the world. Due to the inability of companies such as Sharp, LG, and Japan monitors to deliver large-scale shipments, the Apple iPhone X handset can only buy screens from Samsung, which has caused a variety of problems.

According to foreign media reports, before the Samsung monitor screen appeared insufficient supply, resulting in the downstream Foxconn Group iPhone X assembly plan affected. In addition, Samsung's screen yield problems, resulting in being fined Apple.

In addition, after the release of the iPhone X mobile phone, there are consumers on both sides of the screen reflect the very dazzling green lines, this comes from the screen suppliers. Samsung Samsung used before the organic electronic screen, there have been colored lines.

Exclusive supply also increased the cost of purchasing Apple. According to Bloomberg News reports, iPhone X's organic screen purchase price of 110 US dollars, but the Samsung monitor for Samsung "brother enterprise" offer only 85 US dollars.

In 2018, if Apple can diversify its supply of organic screens, it will not only avoid the problem of insufficient supply last year, but will also further reduce procurement costs and may even have room to cut prices for mobile phones.

It is worth mentioning that LG had previously provided an organic screen to a large-screen Google cell phone, but after the listing there were a lot of quality problems, which also shows that LG's organic screen mass production technology is still being gradually improved.

On Wednesday, LG shares rose sharply amid excitement about the availability of Apple supplies.