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Latest rumor of OLED displays in iPhones inspired by report on Foxconn display factory

There are always rumors around that Apple is planning to switch from LCD to thinner, brighter, more power-efficient OLED displays in its iPhones. The latest is a report seemingly originating on Japanese newspaper Nikkan Kogyo Shimbun cited by GforGames via a Chinese site … So take it with the usual large pinch of salt.

Bloomberg reported back in November that Foxconn was building a new $2.6B display factory whose output would be exclusively devoted to Apple. The headline was quickly changed to remove the reference to Apple, though the piece still strongly hinted at Apple being the sole client. This latest report says that the factory in question will be making only OLED displays.

It’s worth noting that, even if the factory is indeed making displays only for Apple, and even if all those displays are indeed OLED ones, that still doesn’t necessarily mean you can expect OLED displays in next year’s iPhones. Apple has already announced that the Apple Watch will use OLED displays, so it’s possible that the company is simply diversifying its supply chain for these. LG is currently slated as the primary supplier of Apple Watch displays.

While OLED has a number of advantages over LCD displays, it is more expensive to manufacture, so a switch is not one that Apple would make without a careful cost-benefit analysis.

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Foxconn is building a $2.6B display factory just for Apple [maybe – updated]

Update: Bloomberg has now removed Apple from the headline and has updated the piece to hint that Apple is the client without actually saying so.

Foxconn’s Taiwanese display subsidiary Innolux is investing $2.6B over the next two years in a new factory whose production will be exclusive to a single client, which Bloomberg reports to be Apple.

Equipment installation will commence next month with mass production of panels to start by the end of 2015 after an urgent request for exclusive capacity […]

Apple Inc., a Foxconn customer, has previously tapped suppliers for dedicated access to factories in a bid to avoid shortages that can crimp sales of its iPhones and iPads.

Shortages of the iPhone 6 Plus have been attributed to supply difficulties with the display, so a move to protect future display supplies would be a logical one for Apple, though Apple has mostly sourced its displays to date from Sharp, Japan Display, LG and Samsung.

Foxconn is Apple’s lead supplier for the iPhone, though secondary supplier Pegatron is believed to be playing a larger role than planned in a bid to help Apple keep pace with demand.

It was first suggested last month that Foxconn was hoping to make displays for the iPhone, along with other higher-end components – though this talk focused on China rather than Taiwan.

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