Apple counters Samsung to hire LG to manufacture its OLED -


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Thursday, 7 September 2017

Apple counters Samsung to hire LG to manufacture its OLED

Just a day after echoing the news that ensured that if the iPhone 8 will be so expensive is precisely because of Samsung and its OLED screens, a new article by Bloomberg says that Apple has put to work to try to reduce the influence of the Koreans in their production. How do you plan to do it? Hiring LG so they are the ones who make their screens . This way, Samsung would not have all the power.

The report explains that Apple would be linked to Samsung in the exclusive manufacture of the displays until at least 2019 , date from which LG would take care of the subject. In fact, the negotiations are so advanced that they are speculated that they are already talking about terms and forms of payment.

LG and Apple have been negotiating months for this deal to be translated into a signed contract, but LG would have to deal with a number of production challenges , for example in matters related to machinery and production capacity required by Apple. And is that with its current infrastructure, could provide a number of OLED screens that would be insufficient for 2018.

Apple introduced its iPhone in September for a decade, so there's still time to plan for next year , so both companies start adjusting their ways of working.

KGI analyst Ming-Chi Kuo recently commented that because Samsung has a monopoly on the production of the iPhone 8 OLED screens, the costs are double what they should actually be . According to Koreans, it is because they are premium components. Faced with such a competitive advantage, Apple has gone to work to stop depending on them, but will not be easy task, given its huge volume of production and the innovation it requires.

Via | 9to5Mac

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