According to a news article on the Yonhap news website Samsung Display is reported that the company will supply its OLED display panels to Apple Inc. starting next year, industry sources said Friday.
Under the deal, Samsung Display will supply around 100 million units of 5.5-inch panels annually, the expected value of the order will be 3 trillion won (US$2.59 billion).
Industry analysts said Samsung and Apple are expected to maintain the agreement for at least three years.
Samsung has already been a supplier of application processors (AP) for Apple's iPhones. AP chips, referred to as the "brains" of mobile devices, play a key role in activating operating systems and applications of mobile devices.
The deal is also significant as Samsung and Apple had been engaged in a patent battle for the past five years. Industry analysts said the latest deal may signal the extension of the business partnership between the two.
According to the data compiled by industry tracker IHS Samsung Display took up 23% of the global shipment of displays in 2015 for displays below 9 inches, Japan Display followed with 16%, closely followed by LG Display with 14%.