The Shares of Japan Display Inc., Sharp Corp. Apple Inc. fell after South Korea's Electronic Times reported that the iPhone maker has decided to use next-generation screens for its new models next year.
If true, Apple's move OLEDs and currently supply LCD screens. Samsung Display Co., part of Samsung Electronics Co., has so far been the sole provider of organic light-emitting diode displays for use in iPhones. JDI shares fell as much as 21
A shift to all OLED screens for iPhones would be challenging, given the sheer volume of the devices that Apple sells each year. While Samsung Electronics is the sole supplier of OLED screens for high-end Apple phones, the manufacturer also uses the displays for its own smartphones. At the same time, competitors looking for LG Display Co. have struggled to move into mass production. LG Display rose 5.9 percent, the largest intraday gain in four months.
"Ultimately, the plan is for Apple to go full OLED on its iPhones as far as I know what's going on at this point Said Jerry Kang, a senior principal analyst at IHS Markit based in Bundang, South Korea. "Apple has not been able to expand on its iPhone X production because of market demand and price issues."
Indeed, the cost of OLED technology has been a major concern. Sales of the iPhone X with an OLED screen were crimped by its starting price of $ 999. Moving to all OLED screens next year would make it difficult to keep iPhones affordable for mass market consumers.
Jeff Pu, an analyst at Taipei-based Yuanta Securities Investment Consulting, said he does not see Apple's switching to OLED screens for its entire lineup. IPhones, he said.
"It's unlikely that Apple will be releasing three OLED models next year as LG […]
( Corrects year in headline and first paragraph. )