LG is manufacturing OLED and LCD panels for the next-generation iPhones. Reuters/Steve Marcus

LG Display officially became Apple’s second display supplier for the upcoming iPhones earlier this month. Now, a new report is saying the South Korea-headquartered firm is shipping display panels to the Cupertino giant soon.

Digitimes learned from Korean media late last week that LG is shipping both OLED and LCD panels for the next-generation iPhones in the second half of this year. No specific date was mentioned, but the outlets stated that LG Display has already signed a deal with Apple so production for the panels will surely start soon.

Since this is the first time that LG Display is producing OLED display panels for Apple’s iPhones, it isn’t expected to deliver a huge number of units. In fact, LG is only expected to come up with around 3-4 million OLED panels for the 6.5-inch OLED iPhone model, which is currently dubbed the “iPhone 11 Plus.”

Nevertheless, LG’s E6 6G fab in Paju City in South Korea’s Gyeonggi Province is already improving its yield rate. So sources expect LG to secure majority of the 6.5-inch OLED panel orders next year. It could ramp up its OLED panel shipments to 10 million units in 2019.

On the other hand, LG will also contribute to the panel supply for the 6.1-inch LCD model, which is rumored to debut as the “iPhone 9.” For the less-expensive variant, LG is reportedly producing 20 million LCD panels this year. There’s no mention of the number of units LG will likely ship in the following year.

Apple’s move to tap LG Display is necessary, so it could reduce its dependence on its biggest rival, Samsung Electronics. “Securing a second supplier for OLED screens is crucial for Apple as it will allow the company to reduce its reliance on Samsung. At the same time, it will help increase a broad adoption of OLED screens. More suppliers means more volume and, in turn, lower pricing,” IHS Markit Jerry Kang told South China Morning Post in late June.

The deal is also expected to help LG Display improve its financial situation. The firm has recorded a net loss of $87.04 million in the first quarter. It is also anticipating a bigger loss amounting to $174.7 million in the second quarter.