In a significant move for Apple Inc, the Company has signed a deal with South Korea’s LG Display Co. Under to contract agreement LG will supply Apple Liquid Crystal Display Panels (LCD Screens) for five years. The LCD screens are for use in Apple’s products from Desktop to iPhone and the iPods.

As part of the contract agreement, LG will be receiving an advance payment of $500 end of January 2009. Analysts term the deal as significant for LG in view of the global financial meltdown.

LG sources said that the detail of the contract regarding the number of panels to be supplied and time-line for delivery is yet to be decided. Industry sources said that Apple may also consider roping in the new OLED screens, which LG will be launching during the second half of 2009.

The OLED screens are more advanced than LCDs and are more environmental friendly. OLED screens, in a way could help Apple to produce sleeker and thinner products. However, there are no words regarding this from either of the companies.