iPhone 6s

It has been rumored for a long time that Apple will be purchasing OLED display panels from its rival Samsung for the production of iPhones in 2017. A recent report released by Korea Herald has finally proven that this rumor is true. Based on the report, Samsung agreed to provide OLED displays for iPhones starting in 2017 and the deal was sealed for approximately 3 trillion Yuan ($2.59 billion). The agreement between these two giant smartphone manufacturers is expected to be maintained for at least three years.

“Under the deal, Samsung Display will supply around 100 million units of 5.5-inch panels annually, with the value being estimated at 3 trillion won ($2.59 billion). Samsung Display, an affiliate of Samsung Electronics Co., declined to confirm the deal, citing its privacy policy.”

The report was removed by Korea Herald hours after it was published. Apple is always strict about keeping its confidential matters private and might have asked Korea Herald to remove the report.

The agreement requires Samsung to supply 100 million OLED displays (measuring 5.5″ diagonally) for the future generation of iPhones, which are to be released in 2017. This means that most probably we won’t be seeing the new displays in the upcoming iPhone 7. It could be used in iPhone 7s and later models. As for the 4.7-inch displays, the report hasn’t provide any details about it.

The news of Apple buying OLED displays from its arch-rival Samsung is no stranger. Previously, Samsung was responsible for the development and supply of iPhone processor chips, however the company did not win a contract to supply iPhone 7’s A10 processor chips.

The reason Apple has switched from the classic LCD displays to OLED displays is because the production cost is lower as well as the power consumption, which could increase the battery life of the upcoming iPhone models. The LCD displays have a higher power consumption due to the heavy backlighting. Additionally, OLED displays are believed to have a better quality screen resolution and improved visibility in bright sunlight conditions.

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