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Samsung and LG to Supply OLED Panels for iPads
Apple is leaning toward asking LGD and SDC to supply more mid-sized OLED panels. The move comes as BOE continues to struggle to improve the quality of its small/mid-sized OLED displays for use in Apple's products. Apple is notorious for its meticulous product-certification process and being included in its web-like supply chain means a supplier can improve the quality of the components it provides. But Apple doesn’t want to be exposed to a single supplier and follows a decades-old strategy of diversifying its supply chain, making it tough for Apple's parts suppliers to have higher profit margins. The company favors "Apple-centric" production lines" that strictly adhere to its rules and guidelines. Recently a senior industry executive familiar with Apple issues, told The Korea Times that Apple signed OLED agreements with LG Display and Samsung Display under which the two companies will be responsible for supplying Apple with small-sized OLED panels for the forthcoming iPad models. According to the executive, Samsung Display received the "majority of orders" by supplying some 120 million OLED panels to Apple for use in future iPads and asked LG Display to more than double the amount of small/medium OLED panels it could supply.
"Despite Samsung's dominance in the global small/medium OLED display segment, LG Display is catching up. LG plans to invest some 4 trillion won ($3.5B) to increase small/medium OLED capacity. LG's E6-3 line will produce OLED displays for future iPads. LG operates an E6-2 line, with both lines located in Paju, near the North-South Korean border. The E6-2 and E6-3 lines produce components only for Apple. LG is on track to level up its transaction volume with Apple. LG Display CEO Jeong Ho-young has been focusing on improving the company's competitiveness in small/medium OLED displays due to problems faced by Chinese handset vendors.
iPads have the highest tablet market share as Apple shipped 13 million in the first quarter of this year alone. OLED competitor BOE has struggled with its yields for integrated technology.
Apple is leaning toward asking LGD and SDC to supply more mid-sized OLED panels. The move comes as BOE continues to struggle to improve the quality of its small/mid-sized OLED displays for use in Apple's products. Apple is notorious for its meticulous product-certification process and being included in its web-like supply chain means a supplier can improve the quality of the components it provides. But Apple doesn’t want to be exposed to a single supplier and follows a decades-old strategy of diversifying its supply chain, making it tough for Apple's parts suppliers to have higher profit margins. The company favors "Apple-centric" production lines" that strictly adhere to its rules and guidelines. Recently a senior industry executive familiar with Apple issues, told The Korea Times that Apple signed OLED agreements with LG Display and Samsung Display under which the two companies will be responsible for supplying Apple with small-sized OLED panels for the forthcoming iPad models. According to the executive, Samsung Display received the "majority of orders" by supplying some 120 million OLED panels to Apple for use in future iPads and asked LG Display to more than double the amount of small/medium OLED panels it could supply.
"Despite Samsung's dominance in the global small/medium OLED display segment, LG Display is catching up. LG plans to invest some 4 trillion won ($3.5B) to increase small/medium OLED capacity. LG's E6-3 line will produce OLED displays for future iPads. LG operates an E6-2 line, with both lines located in Paju, near the North-South Korean border. The E6-2 and E6-3 lines produce components only for Apple. LG is on track to level up its transaction volume with Apple. LG Display CEO Jeong Ho-young has been focusing on improving the company's competitiveness in small/medium OLED displays due to problems faced by Chinese handset vendors.
iPads have the highest tablet market share as Apple shipped 13 million in the first quarter of this year alone. OLED competitor BOE has struggled with its yields for integrated technology.
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