The contract between the two companies is for five years and calls for LG to receive an advance payment of US$500 million (S$743 million) sometime this month, the South Korean company said in a regulatory filing on Monday.

Seoul-based LG Display and Apple, headquartered in Cupertino, California, planned to decide later on details such as the number of panels LG will provide, LG said.

LG Display declined to provide further details.

Shares in LG Display fell 0.8 per cent to close at 23,550 won. -- AP