The main Apple Inc website featuring Apple co-founder Steve Jobs is seen on an iPhone in this photo illustration taken in Central Sydney October 6, 2011. REUTERS/Daniel Munoz

SEOUL (Reuters) - South Korea’s LG Display Co Ltd and the panel-making unit of Samsung Electronics Co Ltd will supply organic light emitting diode (OLED) screens for Apple Inc’s iPhones, the Electronic Times reported on Wednesday citing unnamed sources.

The report comes after years of speculation that Apple will start using the next-generation technology in its phones. OLED screens are thinner and offer better picture quality than the mainstay liquid crystal display screens.

Japan’s Nikkei newspaper reported last month that Apple plans to start using OLED screens for iPhones starting in 2018.

LG and Samsung Display are close to a final agreement with Apple for the screens, the Electronic Times report said, adding the two Korean firms plan a combined 15 trillion won ($12.8 billion) in capital expenditure to build up OLED production capacity over the next two to three years.

Apple will likely provide some funding to both firms to help with the investments, the paper added.

LG Display and Samsung Display declined to comment, while Apple could not be immediately reached for comment.

Samsung Display, which currently supplies OLED smartphone panels to parent Samsung Electronics and Chinese vendors, is likely getting bigger volumes from Apple than LG Display, the paper said.