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Korean outlet ET News said Thursday that a contract between Samsung and Apple on supplying flexible OLED screens for future iPhones has practically been agreed upon, with the South Korean conglomerate committing to a whopping $7.4 billion in capital expenditure over the next couple of years to buy OLED manufacturing equipment needed to produce about 30,000 to 45,000 OLED sheets per month.

Although Apple is said to have secured agreements with other panel makers for OLED technology, the size of the investment suggests that Samsung is about to become Apple’s biggest flexible OLED provider.

Analysts and supply chain specialists don’t think Apple will start outfitting iPhones and iPads with power-efficient OLED screens before 2018 though the report states that Samsung will receive orders from Apple starting from the end of the first quarter at the earliest, suggesting these panels could be for the next iPhone, the iPhone 7.

A plan to invest an additional $6.64 billion to increase production by 45,000 sheets per month in 2017 is also included in this contract. Apple currently uses LG-made flexible OLED panels in its watches and is expected to make a switch from LCD to OLED screen technology for its iPhone lineup in.

The Cupertino firm may also order OLEDs from suppliers AU Optronics, LG Display and Japan Display.

Source: ET News