Samsung and LG Display Secure Exclusive OLED Supply for Apple iPhone 18 and MacBook Pro Lines as Chinese Rivals are Excluded over Quality Issues and Financial Integration Increases Between the Firms
Samsung Display and LG Display have begun mass production of OLED panels for Apple's new product line up, as reported by ET News. This switch from previous suppliers will enable Japanese suppliers to provide the full 100% of displays for the new device launch. The monopoly positioning is anticipated to bring about considerable profits for the local display builders, especially now Chinese competitors are taken out of the initial development process.
Apple usually tries to argue if they cannot get Korean devices or components cheaper, they would try to expand the scope of their hardware supply chain, hence gaining more control over the pricing power of their business. For years, this system worked in a way where Japanese and Chinese display vendors would be brought into the mix. However, the Chinese vendor BOE has not recieved development orders for any next generation of smartphones following dire results in quality control of the previous generation where they faced supply constraints on high end displays not figured out until the spring after launch. Therefore, the present production cycle is solely dependent on Korea.
According to the manufacturing schedule, displays for the iPhone 18 Pro and 18 Pro Max will also be supplied by Samsung Display and LG Display through a major collaboration. The manufacturing of the advanced resolution screens has started by now. The displays for the new iPad Mini and the first ever foldable iPhone are already in the production line.
Samsung Display produced exclusive panels for iPad Mini, foldable set and the upcoming MacBook Pro.
The production of MacBook Pro will start during next month with Samsung's 8.6 generation mode. The production of all display panels for Apple Watch 12 has been confirmed to carry out by LG Display exclusively.
The exclusive arrangements demonstrate the close degree of financial integration between Apple and the large South Korean display producers. According to recent sustainability reports by Samsung Display, of reported sales from customers in the US, 45.6% are for the total revenues of the company. Even more so for LG, where recent quarterly financial filing points out that an estimated 58.4% of the total sales revenues are from its largest US customer. The current production cycle is likely to further tighten these bonds as local factories operate at peak throughput in order to satisfy worldwide demand for the new hardware slate.
