Manufacturing problems have caused LG to fall behind the schedule that many suppliers follow before beginning mass production for iPhones.

Apple to stick with Samsung for OLED panels as LG struggles to meet supply requirementsImage for representation
Atom Tech Shorts Tuesday, April 24, 2018 - 11:44

Apple Inc’s plans to switch the sourcing of the OLED panels for its iPhones from one South Korean giant to another may come a cropper. It is learnt that LG to whom Apple had turned, instead of Samsung, may not be in a position to meet the requirements of Apple as agreed.

One of the major reasons for Apple choosing LG was to bring down the cost of the display panel and thereby keep the final price of the iPhone models down, in a highly competitive market. That purpose might not be served now, since Samsung charges around $100 for one OLED panel and this is what Apple will continue to pay for the iPhones it plans to release into the market later this year.

Though no specific details have emerged on the reasons behind LG’s failure to come up to the mark, it appears they have had their own components supply problems due to which they cannot start the supplies to Apple by July, when they start manufacturing the iPhones that are announced in September and shipped immediately thereafter.  

Reports suggest that Apple has een requesting LG to begin the third round of prototype production for the 2018' iPhone as Apple struggles to ensure manufacturing issues don’t affect the supply of its upcoming devices.

Apple has already had its quota of issues with the iPhone X when the Facial ID feature had bugs and caused embarrassment it could have avoided.

LG could therefore end up being the alternate supplier, while Samsung will be the main vendor of the OLED panels. Apple needs these panels for 2 of the 3 models of iPhones it is expected to launch this year. The third may have to conventional display with a smaller screen, as reported earlier. This is part of Apple’s plans to be present in more price brackets within the different smartphone segments.

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