September is just around the corner and Apple is already placing initial orders for components for its new iPhone as production will begin right now if it hasn’t already started. In relation to this issue, a recent report states that Apple has ordered between 3 and 5 million OLED panels from LG for the new iPhone that will arrive on the market in a few months . These figures are higher than those of Bloomberg which placed the order for panels at 2-4 million units.
Why has Apple started using LG? The answer is quite simple: they don’t want to be so dependent on Samsung. When a company has several suppliers for the same component, it creates a rivalry between the companies that decide to lower the prices of their components in order to have larger orders. It should be remembered that until now iPhone X only has OLED panels from Samsung, something that will change.
With this strategy, Apple will create a rivalry between LG and Samsung, making it likely that the South Korean company will have to lower the prices of its panele s in order to continue to have a presence at Apple. In the end, the consumers will win because if the components are sold cheaper, the device itself will have a cheaper price to the public, in theory.
The Korea Times has revealed this new report from an LG subcontractor. The highlights of its content are the following:
Apple may start using LG displays soon, considering it a “second supplier” of its OLED panels on the upcoming premium iPhones, sources directly involved with the issue told The Korea Times on Thursday: “Initially, Apple will get between 3 million and 5 million OLED displays from LG Display. LG plans to increase its production capacity,” said an executive from a top-level LG subcontractor.
It is already common for Apple to have two suppliers for each of its components , as well as creating competitiveness to avoid problems if one of the suppliers has problems in its infrastructure, since it will be possible to go to the other supplier and not run out of components.
We’ll have to wait until September and see what the Apple guys have in store for us on their devices.