Apple, LG Display forge US$2.6b deal: Report

Apple is reportedly just an inch away to closing an investment deal with LG Display for OLED screens.

After reports of Samsung Electronics Ltd set to build the world's largest OLED plant came out, Apple has recently been said considering an investment deal with LG Display for similar screens.

Apple is reportedly in talks with LG Display for the latter to manufacture the Cupertino conglomerate's OLED screens. Apple may, in fact, be an inch away to closing the deal with the LG Electronics Inc subsidiary.

In a Korea Herald report published Monday, LG Display is said to produce the OLED needs of Apple for its iPhone and iPad devices. The deal to be closed is estimated between US$1.75 billion to US$2.62 billion.

LG Display has been doubling down on its efforts to offset the competition that is dominated by fellow South Korea firm Samsung. Today, Samsung claims 95 percent of the OLED market share.

Apple did not fully disclose if Samsung is the sole purveyor of its OLED displays for the next-generation smartphones: iPhone 7s, iPhone 7s Plus, and iPhone 8. There have been reports that Apple is not only relying on Samsung for this component to avoid possible shortage and being stuck in the most expensive bid.

Samsung, meanwhile, is reportedly building the biggest super OLED factory which is expected to begin the production by 2019. According to recent reports, it will be named A5, located in the southern province of Chungcheong in South Korea.

The Investor said the A5 plant is touted to be the source of roughly 270,000 units of sixth generation OLED screens each month. This will be 30 percent higher than what the current plant A3 can produce per month. Samsung is said to be investing around US$1.75 billion for the construction of the said factory and another US$14 billion for the equipment.

As to the veracity of the facts, Samsung neither denied nor confirmed any of it so far.