Following the release of iPhone 6s series, Apple has reportedly started working on the next flagships. Although the iPhone 7 is not expected for several months, rumours are rife with information about the upcoming device. The new iPhone is expected to bring incremental upgrades in terms of design, performance and more.

For weeks now, there have been conflicting reports on whether Apple will incorporate an OLED display instead of the dated LED screen. A new report from Bloomberg has pointed towards Apple's new production lab in northern Taiwan where the next-gen OLED displays are being developed. But an iPhone with OLED display is still a long way from reality as a recent report suggested the iPhone 8 to be the most-likely choice.

This means the iPhone 7 is expected to continue using the aging LED screen until Apple finally releases the iPhone 8 with OLED display in 2018.

As a result of OLED display, Apple will be able to make the iPhones "thinner, lighter, brighter and energy efficient," International Business Times reported.

Samsung has successfully integrated OLED displays in its smartphones, leaving a trail for Apple to follow but with some tweaks of its own. Samsung along with other display manufacturers including Japan Display, Sharp and LG Display are possible options for Apple to outsource the manufacturing of OLED displays.

But if Apple sets up its own display manufacturing plant, reliance on third-party OEMs will drastically reduce.

There is no advertising of Apple's ownership in its new production lab in Taiwan but Bloomberg report says an Apple logo on the wall behind the reception and guest sign in using iMac is in line with other Apple offices.