Apple Inc. (NASDAQ:AAPL) is one step closer to selecting a display supplier. A new report states that Apple is close to signing a deal with LG Display in hopes that they company will supply the iWatch with a flexible organic light-emitting diode (OLED) panels.

Apple iWatch

This report comes from the Korea Herald and it cites those with knowledge of the matters. Right now LG is secondary; the iWatch maker is looking at RiTDisplay as its first choice.

We’ve been hearing about the purported iWatch for months now and there was a rumor that it would debut this year. Since it wasn’t unveiled during last week’s iPad event, there is now speculation it will launch next year.

The OLED displays Apple needs for their purported iWatch

Apple’s biggest competitor, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930), already launched their Galaxy Gear watch this year. Although the South Korean tech giant could produce the OLED displays Apple Inc. (NASDAQ:AAPL) needs for their purported iWatch, it’s unlikely they would tap a competitor for such supplies.

As one market source that’s knowledgeable on the matter added, “I do not expect Samsung Display to supply Apple Inc. (NASDAQ:AAPL) with a smart watch OLED. Strategically, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is using OLED to give a special ‘Samsung flavor’ to its devices, so opening up to other customers does not make sense.”

There were reports that Apple Inc. (NASDAQ:AAPL) talked with Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) but the talk was fruitless.

Apple will have two vendors to be safe

Kim Young-woo (analyst for HMC Investment Securities) explained, “Instead of relying on one supplier for its iWatch, which will be unveiled next year, Apple Inc. (NASDAQ:AAPL) will have two vendors to be safe. The key provider will be RiTDisplay and LG Display will be the second. Japan Display might also be a candidate, but so far its capacity seems lacking.”

Reports claim that LG has already started to mass produce flexible OLED panels. The tech company recently launched a new smartphone called called the G Flex. What separates this phone from other phones is the curved design.