With the news reaching the market, shares of Japan display have fallen while those of LG Display have surged upwards.
As per a report by South Korea’s Electronic Times, Apple Inc has opted to use OLED screens in all of the 3 new iPhone models that it plans on releasing in 2019.
With the news reaching the market, shares of Japan Display fell sharply by 10%. Shares of LG Display have surged.
Japan Display has been one of the leading suppliers of LCD screens to Apple’s iPhones. The company has lagged behind its South Korean peers who have invested in OLED production.
The report by Electronic Times also stated, citing multiple anonymous industry sources, that Apple has recently started planning for its 3 new upcoming models for the next year and have selected organic light-emitting diode for its panel.
A representative Japan Display spokesman declined to comment while its equivalent at Apple’s South Korea office was not available for comment.
Cash-strapped Japan display plans on mass producing OLED panels for smartphones only in 2019 and is scouring for investors who can help finance its launch of a production line.
“The Japanese government will continue to provide a lifeline to Japan Display, but the company has been just so slow in catching up with South Korean rivals in OLED,” said Masayuki Otani, Securities Japan’s chief market analyst.
“If Apple uses OLED for all models for next year, that could raise hopes for LG Display to take a slice, as Apple may want to diversify its sources for OLED supply,” said Lee Won-sik, an analyst at Shinyoung Securities in Seoul.