According to leading South Korean news site Yonhap News, leading OLED producer Samsung Display just struck a deal worth an estimated $2.59 billion to supply roughly 100 million 5.5-inch OLED smartphone displays annually to Apple. The duration of the agreement is said to be “at least three years.”
Assuming the report is accurate, it marks an enormous expansion of Apple’s use of OLED technology. Up until now, Apple has only employed OLED displays in its Apple Watch, while choosing to stick with LCD for its remaining product lines, including iPhone and iPad.
The Fool however says the deal shouldn’t come as a surprise. Almost exactly one year ago, Samsung Display raised eyebrows by forming a 200-person team whose reported goal was to focus exclusively on Apple’s display needs.