Apple is investing billions of dollars to help LG get started with the production of OLED displays iPhones lined up in 2018.
Apple is already behind Samsung which is currently the only company with capabilities to design and mass produce OLED displays for smartphones. KGI Securities Analyst Ming-Chi Kuo recently published a report on the matter stating that the OLED display is the most problematic component for the company when it comes to production costs.
Apple wants to get up to the mark with Samsung and is thus supporting LG in its efforts to produce OLED displays. Meanwhile, it also wants to reduce the supply risk for its iPhone lined up in 2018 and is thus providing LG Displays with resources.
While speculations stand that the market penetration for LGD won't be more than 4%-6% in 2018 Apple hopes LG will gain substantial supply share in 2019. This will substantially reduce production cost for the future devices from Apple.
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.
He also mentioned that General Interface Solution (GIS), a Foxconn subsidiary, will join LG to assist with lamination processes. GIS is also supposed to offer its expertise in resolving production issues and providing vertical integration with Foxconn. Foxconn's partnership with LG to provide for a smooth supply chain for Apple.