Apple is reportedly planning to use OLED displays for future iPhone models instead of the usual LCD screens.

The Thursday report comes from news website Nikkei, which further noted that this plan should start by 2018. Apple is said to have informed its suppliers about this plan while LG Display is also preparing capacity upgrades to make high-volume production of OLED displays possible.

Currently, South Korean tech company Samsung Electronics is the only company that is capable of producing large volumes of OLED screens for smartphones. LG is also reputed for the OLED displays found on its TV screens. The report also stated that these two companies will most probably work with Apple as its suppliers.

OLED screens are considered a much better technology when it comes to better contrast of colors and superior power efficiency. Apple currently uses LCD for its iPhones, while its competitors like Samsung or LG already have OLED displays for some of their models. However, the Cupertino-based tech giant already uses OLED for Apple Watch models, which don't really have high-volume production as opposed to the smartphones.

Since iPhone demand is strong, the supply for OLED displays could also pose a challenge for the company. OLED may offer sharper display of images, but they are expensive to mass produce compared to LCDs. In addition, OLED tends to lose its function and features over time.

With Apple facing technical challenges with its plans, the report claims that the company is in talks with display makers to find a solution to the drawbacks of OLED displays. Furthermore, if Apple can't keep up with the demand-supply trends of OLED displays, it may use both LCD and OLED screens for its next generation of smartphones.

If Apple pursues this move, it could have a negative impact on Sharp and Japan Display, the report added, since these two companies supply LCD screens to Apple.