Japan Display happens to be the primary supplier of LCD panels to Apple and its shares dropped by 10 percent following the news that its client could be adopting OLED screen technology for all iPhone models landing in 2019. Sharp declined as much as 4.1 percent, while Samsung was down 1.7 percent. Production leaks picked up by the website of United Kingdom tech magazine T3 suggest the company is preparing a new iPhone X with a 6.1-inch OLED screen.
A representative at Apple's South Korea office was not available for comment.
The biggest OLED manufacturers now are LG Display and Samsung Display.
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As previously reported, leaks and industry insiders have been indicating for some time now that Apple is planning to overhaul its iPhone range this year, possibly with three new iPhone X models. The Electronic Times report suggests a full OLED lineup next year.
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. Moving to all OLED screens next year would make it hard to keep iPhones affordable for mass market consumers. Even with two OLED models, Apple will need to raise the overall price tag and face the risks of selling fewer iPhones, he said.
Apple first used an OLED display on its iPhone X past year, which was a break from the LCD displays every other iPhone model has used.