Apple Reportedly Developing Its Own OLED Technology

There are many examples of Apple (NASDAQ: AAPL) transitioning away from Samsung wherever possible in its supply chain. That's far easier said than done, since Samsung is such a huge player in semiconductors and other parts that go into consumer electronics. Plus, Samsung is really good at providing top-notch hardware components. For example, Apple switched to Taiwan Semiconductor for contract chip manufacturing a few years back. Samsung was reportedly in the running to win back some chip manufacturing business in 2018, but Taiwan Semiconductor may be able to keep its spot thanks to improvements in its 7-nanometer process.

There's inherent risk is relying on a competitor as a primary supplier, so the strategic benefits of diversifying away from the South Korean conglomerate are obvious. Apple is expected to finally adopt OLED display technology this year, with Samsung as the sole supplier for OLED panels. However, the Mac maker is already developing its own OLED technology, which would lay the foundation for an inevitable transition away from Samsung down the road.

The iPhone 7 still uses a traditional LCD display. Image source: Apple.

Source: Fool.com