Samsung Reported to Enter a Mega Deal With Apple for iPhone 8 OLED Panels
Samsung currently has no competition in the OLED panel market, and as much as the Korean tech firm and Apple will continue to lock horns in the smartphone market, the two companies need each other for a different set of matters. Looking at the last report, Samsung is expected to gain exclusivity in being the chief supplier for iPhone 8’s OLED panels.
Apple Left With No Alternative Other Than Samsung as the Latter Is Expected to Pump More Than $12 Billion in Its Facilities
An earlier report suggests that both Apple and Google were expected to partner with LG Display for curved OLED panels, but it appears that the manufacturer will not be able to keep up demand for the iPhone 8. According to the latest statistic, Samsung Display is expected to manufacturer up to a 100 million OLED panels for the upcoming iPhone, and Samsung’s forte in the matter is of great important to Apple. The manufacturer currently holds a 95 percent market share in the OLED business and is expected to invest no less than 15 trillion won (US$12.64 billion) in its facilities this year and next year to keep up demand.
One of Apple’s key approaches is to have several manufacturers for different components as it allows the tech giant to obtain the best quotes possible for keeping its margins high with every iPhone sold. Since Apple sells more iPhones than any company in a given quarter, manufacturers of those key components most likely comply with Apple’s requests, seeing as how they stand to generate a hefty amount of revenue thanks to the number of iPhones sold. However, at this point, Apple might have experienced difficulty locating another supplier other than Samsung for OLED panels, but things are said to change for the year 2018.
With several companies entering the fold such as LG, Sharp, and Japan Display, Samsung could see that market dominance challenged, but it is very unlikely that Apple will tap a different manufacturer to supply a majority of the OLED panels simply because Samsung possesses a vast number of resources to keep up with that demand. Are you excited to see an OLED panel present in the 2017 iPhone? Tell us your thoughts right away.