Samsung May Invest $7.4 Billion in OLED Displays for iPhones

Back in November, the highly-credible KGI Securities analyst Ming-Chi Kuo predicted that Apple’s iPhone 7, expected to launch this coming September, would utilize AMOLED technology for the display panels. However, shortly thereafter, Kuo revised his prediction, stating that Apple would likely stick with TFT-LCD technology until 2019.

A recent report from Korea may contradict Kuo’s claims, stating that Samsung is close to reaching an agreement with Apple to supply flexible OLED displays for upcoming iPhones.

The report, from Korea-based ET News, claims that the deal between Apple and Samsung, which would name Samsung as the primary provider of OLED display panels for Apple devices, has “practically been decided.” According the the article, Samsung is preparing for the contract by investing somewhere between $2.49 billion and $3.32 billion in plant and equipment costs, with the investment growing up to $7.47 billion if additional supply is needed.

OLED displays have several theoretical advantages over their LCD counterparts. OLED displays have the ability to produce deeper black levels, better contrast ratios, and a better viewing angle, and the technology has the capability of using less power (read: longer battery life). However, the displays are, at the moment, much more expensive than LCD displays, likely the main reason Apple hasn’t made the switch yet.

Apple has used LCD displays in their iPhones since the original iPhone was introduced in 2007. However, when the Apple Watch was introduced this past April, many users were quick to note that the display on the Watch utilized OLED technology.

The Apple Watch display brought about a slew of rumors that Apple would be looking to implement the technology in their iPhone and iPad displays. The rumors were intensified when Apple’s Chief Design Officer Jony Ive said in an interview that the LCD display in the iPhone 6 “feels very old” in comparison to the Apple Watch display.

While much of the evidence points to Apple sticking with LCD technology for the time being (Foxconn, one of Apple’s manufacturers, recently invested $4 billion in a new LCD plant solely for iPhone screens), the company will likely make the switch to OLED technology at some point. Many analysts claim that the switch won’t be made until 2018 or 2019, but if the report from Korea is true, we may see OLED iPhone displays sooner than that.

Learn More: Samsung to Steal 3D Touch Feature for Galaxy S7

[The information provided in this article has NOT been confirmed by Apple and may be speculation. Provided details may not be factual. Take all rumors, tech or otherwise, with a grain of salt.]