Apple Considering LG Display Investment For OLED iPhone Screens – Investor's Business Daily

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Consumer electronics giant Apple (AAPL) is in talks with LG Display (LPL) to invest in the South Korean display-maker’s new OLED screen factory, according to news reports Monday.

XAutoplay: On | OffThe Korea Herald reports that Apple is close to signing a deal that would set aside production at the LG plant exclusively for Apple orders. Apple is said to be investing $1.75 billion to $2.62 billion in the OLED factory.

Samsung dominates the OLED display market today with about 95% market share, but rivals are building new factories to catch up.

Samsung is believed to be the sole supplier of OLED screens for Apple’s upcoming iPhone 8 smartphone. Apple prefers to have multiple sources of components for its products, so it isn’t reliant on one supplier. Using multiple suppliers reduces the risk of component shortages and strengthens Apple’s position in price negotiations.

Meanwhile, Samsung is planning to build a “super OLED” factory that would start producing displays in 2019. It would be the world’s largest OLED production plant, 9to5Mac reported Friday.


IBD’S TAKE: Apple stock has an IBD Composite Rating of 73, meaning it has outperformed 73% of stocks in key metrics over the past 12 months. For more information on Apple stock, visit the IBD Stock Checkup.


Apple shares slipped 0.4% to close at 143.50 on the stock market today. Apple stock has been building a flat base with a buy point of 156.75, but it’s currently trading below its 50-day moving average, a negative sign.

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