Samsung Display had reportedly signed a deal with Apple to supply organic light-emitting diode displays for the next iPhones.

According to a report from the Korea Herald, Samsung will supply an annual 100 million of 5.5-inch OLED panels annually, worth 3 trillion won ($2.6 billion), to Apple from the second quarter next year for three years.

The Samsung displays are expected to replace the liquid crystal display panels used in the current iPhones that are produced by LG Display. LG currently produces almost 40 percent of the iPhone display panels.

Samsung Display is the main supplier of AMOLED panels for its parent firm Samsung Electronics' premium Galaxy smartphones. It supplied Liquid Crystal Display (LCD) for Apple until 2009 but the deal was halted following the two conglomerates' patent dispute that is still on-going. Sharp as also been an LCD supplier for Apple.

Despite its leadership in larger OLEDs that are used for TVs and digital signage, LG has little presence in the smaller OLED market that is currently dominated by its archrival Samsung.