Has Apple Committed $4 billion for OLEDs?


Apple Insider flagged up a report from JP Morgan that suggests that Apple’s financial filings suggest that it has placed a purchase order (an “off-balance sheet obligation”) for around $4 billion and the analyst suggests that this is a long term deal to buy OLEDs, probably from Samsung.

Analyst Comment

It wouldn’t be surprising if such a deal had been made. Apple has a long history of placing forward orders with supplier, several times it has done so for LPL. There simply isn’t the capacity in the OLED world to meet a big order, so those investing heavily in capacity are likely to be looking for substantial commitments to give the confidence to invest, and to decline other business. (BR)