LG hesitates to accept Google’s huge order for OLED screens.
LG is reluctant to accept the $ 880 million proposed by Google to help increase its production of LG OLED Screens. The South Korean may be afraid of being too indebted towards the giant of Moutain View. Nevertheless, the interests of the two firms seem to come together.
Rumor has it that Google will enter into an agreement with LG, investing $ 880 million to help South Korea increase its production capacity for OLED displays. In exchange, the manufacturer would support the manufacture of flexible screens for the Pixel 2 and future Google smartphones.
This information, unveiled yesterday by sources close to the mobile industry, is not yet official. However, LG Display now seems to confirm this rumor. As part of a regulatory statement, South Korean states that “a growing number of customers are showing interest in flexible OLED screens as a result of the recent market expansion.” On the other hand, the firm also explains that “nothing has been decided at the moment”.
Google: A first choice partner for LG Display
It seems that LG is not yet certain to accept Google’s tempting offer. Yet an alliance between the two companies would be strategic for both parties. The first Google Pixel, and its Pixel XL declination are based on AMOLED screens, but these screens are provided by Samsung. However, according to many rumors, Apple would have reserved the majority of Samsung’s OLED screens for the next two years. Google has no choice but to rely on another vendor.
For its part, LG has been considering increasing its capacity to produce OLED displays by the end of 2017. Google’s investment could, therefore, be aligned with its own ambitions. Remember that LG and Google have already collaborated on several Nexus smartphones. However, the builder may be afraid to commit to the long term and become too dependent on Google.