Japan’s Nikkei newspaper reported last month that Apple plans to start using OLED screens for iPhones starting in 2018, but no one was sure who was going to make them. It has been rumoured that Apple would be moving to OLED for years so, sooner or later one of the rumours had to be right.
According to the Electronic Times, LG and Samsung Display are close to a final agreement with Apple for the screens and will invest $12.8 billion in capital expenditure to build up OLED production capacity over the next two to three years.
Apple will probably provide some cash to both firms to help with the investments, but there is still a big risk that Samsung and LG are taking. After all interest in smartphones is decreasing and Apple could reduce orders if the Iphone 7 does not sell very well.
Still, Samsung Display currently supplies OLED smartphone panels to parent Samsung Electronics and Chinese vendors, so if Apple does not sell as many iPhone 7s it probably has others to sell them too,