Apple Selects LG to be Exclusive Supplier of iPhone 9 Battery

According to a report released on Thursday, Apple has chosen South Korea’s LG Chem Ltd to be the sole supplier of batteries bound for a next-generation iPhone 9 expected to debut in the second half of 2018.

The report is notable because Apple is known for a “multi vendor strategy” for its components such as the battery, but LG has reportedly made a big enough investment in its battery technology to win Apple over, with this production is expected to begin next year.

“LG has invested hundred of billions of Korean won for related facilities and plans to start mass production from early next year,” said in the report in Korea.

Apple’s iPhone 9 will adopt a battery module that is “bent” or extended to one side at its bottom to form an “L” shape. This technology allows Apple to take advantage of the space on the bottom right of the iPhone that has evolved from the development of electronic component integration technology. Since its release, iPhone has relied on standard rectangular “jelly roll” lithium-ion batteries, according to the report.

The L-shaped, two-cell battery design has also been speculated to make an appearance on the iPhone 8, set to be launched later this year, according to reports. The new design is also expected to result in faster charging speed.

LG’s focus on the L-shaped design is said to have been what won Apple over. Other tech companies, such as Samsung, have generally remained focused on the traditional rectangular design that most smartphones are currently featured.

LG Chem shares have risen 3.7% in the morning trade of their highest level since April 2016. They later pared gains to be up 0.5%.

Apple is widely expected to reveal its next-generation iPhone this fall alongside iterative improvements to iPhone 7 series handsets. The iPhone 8 is rumored to incorporate exotic tech like a full-face OLED screen, front-facing 3D-sensing camera, wireless charging and embedded Touch ID sensors.

Meanwhile, a report earlier this year stated that Apple could introduce two new OLED-screen sizes with iPhone 9, including one at 5.28-inches and one at 6.46-inches.

Apple Inc and LG Electronic Stock Performance

Apple Inc. traded traded 0.45%, or 0.68, to $150.34, by 5:16 PM GMT-4 on July 20 trading. It opened in $151.50, with a session high of $151.74, and a session low of $150.19. Its market capitalization was $788.76 billion, its P/E ratio was 17.58, and its dividend yield was 1.68%.

LG Electronics Inc. traded  1.73%, or 1,200, to KRW 68,200, by 3:30  PM GMT+9. It opened in KRW 69,800, with a session high of KRW 70,100, and a session low of KRW 68,200. Its market capitalization was KRW 11.76 trillion, with a P/E ratio of 18.02 and a dividend yield of 0.59%.

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