Apple Inc. AAPL is reportedly considering bringing OLED display to its next-gen iPhones. Reportedly, the tech giant has been considering partnering with Samsung Electronics Co. Ltd. SSNLF for the supply of the display devices.
According to media reports, Samsung has already received the contract for providing OLED displays for the Apple Watch, while Apple considers whether to have OLED display or conventional LCD ones in its upcoming iPhone 7. So far, LG Display Co., Ltd. LPL has been the only OLED provider for Apple.
OLED display is being increasingly adopted as it comes with improved brightness, contrast and efficiency compared with LCD or Plasma displays. Television sets have long been equipped with OLED displays and now even smartphones are catching up.
Android phones have been early adopters of this technology. Apple has already been using it in its Watch for a while now. Perhaps the positive reviews from Watch users have prompted the company to take it to its flagship product. Having an OLED will not only enhance the iPhone display by making the contrast much more enhanced but will reduce consumption costs as there will be no need for backlights.
While Apple is yet to decide whether the new iPhones will have the OLED display or not, it seems that one of the main reasons for partnering with Samsung will be its ability to supply at reasonable prices. It’s noteworthy that in the past Samsung had reduced its presence in the OLED TV space because of higher expenses.
Amid such a scenario, Apple may continue to stick to the good old LCDs for iPhones as higher costs would significantly add to its expenses, especially considering the volumes it ships.
Currently, Apple has a Zacks Rank #2 (Buy). A better-ranked stock in the tech space is Facebook, Inc. FB, sporting a Zacks Rank #1 (Strong Buy).
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