LG announced it has landed a deal with Apple to supply the firm with displays for the next five years and that it will receive a $500 million up-front payment from Apple later this month:
The Korean firm has declined to provide the full financial terms of the deal but in a securities filing admitted that it will receive a $500 million up-front payment from Apple later in January, revealing a more substantial deal over the long term. The company has acknowledged the payment and refers to the new deal as a deepening of its agreements with the American company.
"Although LG Display already had a relationship with Apple, the deal's duration and the size of the advance show that the two companies are involved in a long-term, strategic alliance," company spokesman Son Young-jun says.
LG currently makes about 70 percent of the displays Apple uses in its products.