Samsung Display and LG Display have recently received approval for the mass production of Apple's iPhone 16 Pro OLED screens. This is the most awaited milestone for LG Display, which had previously missed mass production deadlines.
Securing this approval on time allows LG Display to narrow the gap with Samsung Display in the competitive iPhone OLED market.
Both companies are now preparing for the approval process for the iPhone 16 Pro Max OLED.
Industry Confirmation and Production Plans
According to industry sources via South Korean online newspaper The Elec, Samsung Display and LG Display received approval for the mass production of the iPhone 16 Pro OLED in April.
With this approval, both companies are expected to start mass production soon. The iPhone 16 series, set for release in the latter half of the year, will include four models: Regular, Plus, Pro, and Pro Max.
Samsung Display will supply OLED screens for all four models, while LG Display will focus on the Pro and Pro Max variants. Meanwhile, BOE is anticipated to provide OLED screens for the iPhone 16 standard models.
Competition in OLED Production is Going Crazy
While Samsung Display and LG Display are awaiting approval for the mass production of the iPhone 16 Pro Max OLED, LG Display's timely approval for the iPhone 16 Pro OLED is a strategic win.
Last year, LG Display received approval for the iPhone 15 Pro OLED models several months late, resulting in Samsung Display increasing its volume and securing higher prices. This year's iPhone 16 Pro models feature only minor design changes, such as a thinner lower bezel, which could enable LG Display to better compete with Samsung Display in the OLED market.
Approval Process For OLED Production Now Simplified
Apple has reportedly simplified some procedures in the approval process for LG Display's iPhone 16 Pro OLED mass production, which might help LG Display maintain its schedule. For the iPhone 16 Pro Max OLED, Samsung Display is expected to complete the approval process by the end of April, while LG Display is scheduled to proceed in mid-May.
Industry observers are keenly watching whether LG Display can secure approval as planned.
Impact on Samsung Display and LG Display
Currently, Samsung Display has approval for the mass production of the iPhone 16 standard and Pro model OLEDs, with the Plus and Pro Max models pending. Although Samsung Display initially planned to ship 155.6 million iPhone OLED units this year, estimates have dropped to 130 million units due to sluggish iPhone sales and increased competition from LG Display.
Since iPhone OLED sales contribute over 70% of Samsung Display's operating profit, LG Display's advancements could significantly impact Samsung Display's financial performance.
Prospects for LG Display
LG Display's timely approval of the iPhone 16 Pro OLED mass production has raised expectations for improved performance in the second half of the year. The company turned a profit in the fourth quarter of last year, primarily due to iPhone OLED sales. This latest achievement positions LG Display to potentially capture a larger share of the market and enhance its profitability.
The approval of mass production for iPhone 16 Pro OLED screens by both Samsung Display and LG Display marks a critical development in the OLED market.
LG Display's on-time approval signifies a strategic shift, offering it a better chance to compete with Samsung Display. As both companies prepare for the iPhone 16 Pro Max OLED approval, the industry eagerly awaits the outcome, which could reshape the competitive landscape and influence future market dynamics.
While we're waiting for the highly anticipated iPhone 16, Tech Times reported that the upcoming smartphone would have a MagSafe charging ring as shown in a reputable French website Shopsystem.
Another report pointed out that the iPhone 16 models will allegedly sport a handful of camera upgrades including an improved ultra-wide lens and vertical camera layout.
