Apple in negotiations with Sharp to supply OLED screens for new iPhones

iPhone 6 inside view retina hd display

Bloomberg is reporting that Apple is in negotiations with Japanese consumer electronics maker Sharp to supply organic LED displays (OLED) for future iPhones. Any potential agreement is contingent upon Sharp’s production capability. The rumored discussions reportedly stem from Apple’s desire to secure multiple suppliers for organic LED screens and minimize exposure to any single supplier.

“Apple has unofficially or as a nod encouraged Sharp to go into it,” said Amir Anvarzadeh, Singapore-based head of Japanese equity sales at BGC Partners Inc.

“Apple’s general strategy is to increase the competition on the supply side, and dilute the risk exposure to one company.”

Sharp also announced it will invest 57.4 billion yen, or approximately $566 million, for the development of OLED production facilities in Mie and Osaka to build smartphone displays, with the goal of starting output by June 2018.

Source: Bloomberg