It is possible that Apple may be preparing an OLED iPhone for release later this year, according to a source at Korean electronics giant LG.
Apple have contacted LG to supply various sizes of OLEDs and an anonymous source has snitched that one of the screens will definitely end up in the next generation of iPhone.
Apple have previously quashed rumours that the next iPhone will be OLED but making the move to OLED would make quite a bit of sense for Apple. Due to the fact that OLEDs do not require a backlight to display the images/videos on the screen it means there an improvement in battery life. OLEDs are also thinner than LCDs as they do not require the backlight source and they also have a better picture quality. So the question really is why wouldn't they go for OLED?
Also the Palm Pre will be out in the next few months which is definitely touted as one of the big competitors to the iPhone and it only uses an LCD screen, so if the next iPhone had an OLED screen they already have one up on Palm