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Published: Wed, August 02, 2017
Research | By Jennifer Evans

Top Apple Inc. Analyst Makes 2018 iPhone Prediction

Top Apple Inc. Analyst Makes 2018 iPhone Prediction

"Apple will reportedly make the investment as advance payment for the planned panel supplies", The Korea Herald said. The move might allow for quicker production and more bargaining power for Apple now with two OLED suppliers working on the flagship phone.

Apple has a unique relationship with Samsung.

Kuo pulled out a prediction in his report that LG will capture 10-20 percent of iPhone OLED display production in 2019 and up to 20-30 percent in 2020.

Earlier in July, rumors came out suggesting Apple was attempting to strike a deal with LG to invest billions of dollars in a new facility that will exclusively crank out OLED displays for Apple. So these OLED displays can be used in the upcoming iPhone 8.

Apple wants to get up to the mark with Samsung and is thus supporting LG in its efforts to produce OLED displays.

We can expect that Apple will use OLED display Panels for all its next releases in 2019.

Seemingly corroborating this report and offering some additional details about Apple's and LG's potential OLED display partnership is a research note from KGI Securities analyst Ming-Chi Kuo, by way of MacRumors. All iPhone models up to the iPhone 7 and iPhone 7 Plus feature LCD displays, so the transition might be causing Apple's reported production difficulties. However, considering its strengths are in front-end process, collaborating with a specialized back-end process provider like GIS will, in our view, significantly boost iPhone OLED panel output rate. Apple spends $2.70 billion in LG to build OLED display for iPhones.

However, for Apple to proliferate this technology across a wider range of price points, it needs more industrywide supply available at lower per-unit costs.

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