A report by Bloomberg revealed that Apple has launched a secret laboratory in northern Taiwan, where the engineers are said to be working on new display technologies for the company's iPhone and iPad devices, said sources with knowledge regarding the facility.

The report said that the laboratory houses at least 50 engineers, along with other workers, with Apple recruiting employees for the facility away from local display makers Qualcomm and AU Optronics.

Apple spokeswoman Kristin Huguet declined to issue a comment to Bloomberg regarding the report.

The laboratory was allegedly opened earlier in April to create displays that would be lighter, brighter, thinner, and more energy efficient compared to the other products available in the market. To be able to create such products, Apple is said to be making the switch to organic light emitting diodes, or OLED, which do not require a backlight and are thinner compared to the liquid crystal displays used today by iPhones, iPads and Macs.

Apple is also looking to decrease its reliance on other companies such as rival Samsung, Sharp and Japan Display to supply displays, hence the decision to develop its own screens.

Morgan Stanley recently released a report which predicted that Apple will be experiencing the first ever drop in sales of iPhones next year, not due to weak demand for the smartphone but due to robust inventories. Apple could be thinking that, if it is able to manufacture more components of its devices in-house, it would be able to exercise more control over the production of its products.

Apple is continuing to look for engineers to hire for the Taiwan-based facility, which has no indication outside that it is run by the company. There is no corporate signage anywhere on the structure, which is a stark contrast to the other plants in the area that bear massive logos. The only indication that it is an Apple facility is an Apple logo on the wall of the reception area inside.

A report released last month claimed that Apple is looking to switch to OLED displays for its iPhones in 2018, which is information that coincides with the alleged purpose of the secret laboratory in Taiwan.