Taiwanese manufacturer Hon Hai Precision Industry could be a big winner in Apple's supply chain in the next round of iPhones expected to be launched later this year, according to investment bank JPMorgan.
OLED refers to organic light-emitting diodes that experts say offers brighter displays and better power efficiency over the standard LCD — liquid crystal display — screens.
In a Tuesday note, JPMorgan's Asia tech analyst and head of Taiwan equity research, Gokul Hariharan, said the bank expected Hon Hai, a top assembler of iPhone handsets, to be the sole supplier for the new 5.85-inch OLED model, while retaining a smaller share in the 5.5-inch display handsets. This, along with better average selling price, should help Hon Hai's market share in iPhone assembly to stabilize in the upcoming model cycle, according to the bank.
"This is our assumption as of now that (Hon Hai) will handle all of the (newest) iPhone assembly. Historically, they have handled the most advanced product in most iPhone cycles," Hariharan told CNBC on Wednesday.