Apple Reportedly Switching To All-OLED iPhone Lineup

Apple, Inc. AAPL is reportedly going all-in on OLED screens for its 2019 iPhone models — news that could have a major impact on iPhone margins and Apple suppliers.

What Happened

Unnamed industry sources said all three of the iPhone models Apple is planning for 2019 will come equipped with high-tech OLED screens, according to a new report by South Korea’s Electronic Times. The organic light-emitting diode screens make images sharper and brighter than liquid crystal display screens. Up to this point, the high-end iPhone X has been the only iPhone model with an OLED display.

Why It’s Important

OLED panels are much more expensive than LCD panels; the shift to OLED could have an impact on iPhone prices and Apple’s costs and margins. Investors will be watching closely for the pricing of the new models and the market reception. 

In the meantime, Samsung Electronics Co Ltd SSNLF stock traded higher by more than 1.7 percent on Seoul on Tuesday. Samsung is currently Apple’s exclusive supplier of OLED panels for the iPhone X. Samsung supplier Universal Display Corporation OLED traded higher by more than 18 percent Tuesday morning. OLED supplier LG Display Co Ltd. (ADR) LPL, which was not directly impacted by the news, was also trading higher by more than 5 percent.

At the same time, LCD iPhone supplier Japan Display Inc JNNDF traded down by 20 percent.

What’s Next

Investors will be looking for confirmation of a full-OLED iPhone lineup. If so, they will be watching Apple supplier stocks and Apple analysts for commentary about how the move could impact iPhone price, margins and sales.

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Photo courtesy of Apple.