November 21, 2024

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[THE INVESTOR] LG Display said the supply deal for organic light-emitting diode panels to Apple’s iPhone X has not been settled, in response to industry speculation on a possible deal. 

“Regarding the OLED supply deal for Apple’s iPhone X, nothing has been set in detail. When anything is confirmed in detail, we will announce it, or (otherwise an announcement will be made) in a month,” LG Display said in its regulatory filing Wednesday afternoon. 

The statement followed Korea Exchange’s request to clarify the industry speculation that emerged on the same day. 

A local media outlet reported that LG Display signed a OLED supply deal with Apple for iPhone X and that the firm is now setting up production equipment for iPhone X in Paju E6 assembly line. After the setup is completed, the production would start around June to supply some 60 million OLED panels, a source was quoted as saying. 

Apple sells around 200 million smartphones every year and Samsung Display, currently the sole supplier, reportedly signed a deal for 67 million units for the iPhone X. 

LG Display has been a solid partner of Apple over the last 10 years, providing liquid crystal displays until the US smartphone maker turned to Samsung Electronics for OLED screens for the iPhone X for the first time. 

Apple’s partnership is crucial for LG Display that is recently accelerating the investment of OLED panels for smartphones. 

Last month, the firm announced an investment of 15 trillion won ($13.7 billion) for OLED panels for both television and mobile devices over the next three years, with 10 trillion won set aside for OLED panels for smartphones. 

LG Display is expected to double the sales portion of OLED screens for both televisions and mobile devices next year, according to its Chief Financial Officer Kim Sang-don during the firm’s conference call last month.
According to IHS Markit, the global OLED market for smartphone has risen on an annual average of 23.5 percent over the last five years. Market growth is expected to double next year to $28.4 billion. 

By Shin Ji-hye/The Korea Herald (shinjh@heraldcorp.com)