[ETNEWS] LG Display has been selected as a secondary supplier of flexible OLED panels for Apple’s iPhones, according to sources on Sept. 14.

Samsung Display, the display-making unit of Samsung Electronics, has been the sole OLED display vendor for the smartphone maker. Apple first adopted OLED for its flagship iPhone X in 2017.

With the latest move, LGD will likely be able to expand its foothold in the mobile OLED segment, possibly by signing supply deals with other smartphone makers including Huawei, Xiaomi, and Oppo.

The sources said LGD’s sixth-generation flexible OLED panels recently passed a series of Apple’s quality tests. In addition, the display company is preparing to begin mass-production of OLED panels at two manufacturing lines of its E6 plant, which have been operational only for a test run until recently.

The display company also has the E5 OLED plant currently up and running, but the facility has been utilized mainly for R&D projects.

LGD’s entry into Apple’s supply chain will likely pose a challenge to Samsung Display, which controls 95 percent of the global OLED market.

The diversification, on the other hand, will help Apple reduce the production cost of its OLED-installed iPhones. The IPhone X starts from US$999, and goes all the way up to US$1,149. The base models of the latest iPhone XS and XS MAX, which were unveiled earlier this week, are priced at US$999 and US$1,099, respectively.

The 5.8-inch iPhone X’s flexible OLED screen, which costs US$110, is the most expensive component of the phone, according to market research firm IHS Markit. The total material cost for the iPhone X is US$370.25.

By Bae Ok-jin (withok@etnews.com)  (theinvestor@heraldcorp.com)  
This story is co-produced by by ET News and The Investor