Apple has reportedly decided to use OLED screens in all three new iPhone models planned for next year, a development that had immediate effect on the Apple's display suppliers.

According to South Korea's Electronic Times, Apple recently started planning new iPhone models and decided all three models would have organic light-emitting diode panels.

The report sent shares in Japan Display tumbling 10 percent, while shares in LG Display gained 5 percent. The company plans to start mass-producing OLED panels for smartphones only from 2019, and is looking for new investors who can finance investment to launch a production line.

Sharp, another Apple LCD supplier, also declined as much as 4.3 percent.

Samsung Display is the sole supplier of OLED screens for high-end Apple phones, but the manufacturer also uses them for its own smartphones, limiting supplies.

LG Display has struggled to move into mass production and isn't likely to boost OLED production for Apple in 2019 from 5 million to 10 million units expected this year. Still, LG Display shares rose as much as 5.9 percent on the Electronic Times report.

Apple is also working on its own technology for displays. Called MicroLED, the screens use different light-emitting compounds than the current OLED displays and promise to make future gadgets slimmer, brighter and less power-hungry.