According to the report, it is because it seems that the profit margins for LCDs used in the iPhones are simply too low and is no longer worth their effort. Instead, Apple is expected to source their LCDs from JDI and Sharp. LG has been one of Apple’s manufacturing partners for a while, but ever since Apple started to switch over to OLED, it made sense that their orders for LCDs dropped as well.
At the moment, the only iPhone that uses LCD would be the iPhone SE that launched last year. The entire iPhone 12 lineup has made the full transition over to OLED. LG is also expected to convert the factory and focus on creating displays for automobiles. What’s interesting is that we have to wonder if the company’s decision to stop making phone displays could be tied in with an earlier report, where LG stated that they might need to consider exiting the smartphone industry.