Pick up a high-end smartphone these days and chances are it will have a crisp, energy-sipping organic LED display — unless it's an iPhone.
That will change next year, when Apple Inc. plans to adopt the technology for the next major upgrade to its flagship product. To do so, the Cupertino, California-based company will have to get its hands on millions of OLED screens.
As a result, Japanese suppliers are under pressure to build up manufacturing operations. Apple, which usually prefers to have multiple suppliers, is in negotiations with Sharp Corp. to procure OLEDs. Japan Display Inc. (JDI) is moving to build up its own OLED production capabilities. Initial costs could reach $2 billion for each, stretching their finances even before they get any firm orders. Even so, they may not have a choice.