Apple has decided to use OLED screens in all three new iPhone models planned for next year, according to media reports.
Japan Display, one of the main suppliers of iPhone liquid crystal display (LCD) screens, has lagged its South Korean rivals in OLED production.
Apple recently started planning new iPhone models and decided all three models would have organic light-emitting diode panels.
Cash-strapped Japan Display plans to start mass-producing OLED panels for smartphones only from 2019, and is looking for new investors who can finance investment to launch 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, chief market analyst at Securities Japan.
It was formed in 2012 by combining the display businesses of Hitachi, Toshiba and Sony in a deal brokered by the state-backed Innovation Network of Japan (INCJ).
“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.