Samsung’s display division will start supplying Apple with 5.5 inch OLED display panels starting in 2017. The Korea Herald reports that Apple has awarded Samsung with a $2.59 billion deal, which calls for Samsung with 100 million 5.5-inch OLED panels yearly.
The oft-times rival companies are expected to maintain the agreement for at least three years. Both companies have declined to comment.
Samsung Display accounted for 23 percent of the global shipment of displays in 2015 for the smaller than 9 inches segment, according to industry tracker IHS. Japan Display Inc. was second with 16 percent, trailed by LG Display Inc. with 14 percent.
Analyst Ming-Chi Kuo has said that the iPhone 7s expected in 2017 would feature a larger 5.8-inch OLED display. Today’s report may have negated that prediction.
It remains unclear as of now if Apple will also be looking at other suppliers for OLED panels to diversify its supply chain. Apple has reportedly held talks with JDI and LG Display, while Foxconn, is reportedly buying Sharp to be able supply OLED panels to Apple.