Apple is reportedly close to finalizing a deal with LG Display and Samsung Display regarding the supply of organic light-emitting diodes (OLED) for its iPhone handsets. Rumours have been doing rounds for several years that the tech company will use OLED display technology for its phones. A recent report on Japan’s Nikkei newspaper suggests that the company plans to use OLED screens for its iPhones from 2018.

Samsung Display and LG, the two Korean firms, are said to have new plans for investment in the OLED production over the next two to three years. The companies are likely to invest a whooping US$12.8 billion (approx. AU$17.5) in capital expenditure to ensure a robust OLED production capacity for the future. Apple will probably help the two firms with some funding for the investment.

OLED technology is regarded to be more powerful and better in quality than a liquid crystal display (LCD) technology. OLED screens appear very thin and offer a more beautiful picture quality than what you can expect from LCD screens, notes Economic Times.

There were reports in November that Apple will adopt the OLED display technology for its iPhones and the company will rely on manufacturers like LG and Samsung that use OLED on their phones. Apple sells over 200 million iPhones a year and in the initial stage, the company might opt for both OLED and LCD screens for its phones.

The reason why Apple chooses OLED screens over LCDs is that the former offers more power efficiency, deeper blacks, more saturated colours and better contrasts. OLEDs are growing in popularity significantly and are soon to overshadow LCDs, points out display expert at DisplayMate Technologies, Raymond Soneira, reports Forbes.

Samsung Display is currently supplying OLED smartphone panels to its parent company, Samsung Electronics and to various Chinese vendors. It is expected that the company will get a bigger volume of OLED supply contract from Apple than LG display, observes Reuters.