As we inch closer and closer to the launch of this year’s iPhones, supply-chain sources are saying that Apple is rumored to be in talks with Samsung regarding the costs of OLED panels. The talks are allegedly coming with both pros and cons for the Cupertino firm.
While Samsung so far seems to be the sole supplier of OLED displays for the iPhone, it does give the Korean company leverage in negations. Apple previously had planned to split the production between rivals Samsung and LG, but it appears LG is having troubles meeting production targets and may not even be a viable option for a back-up supplier this year. On the other hand, Digitimes claims that Samsung would be receiving much higher production volumes than last year.
As of today, reports indicate that Apple is seeking a price reduction from $110 down to $100.
Apple is likely to purchase up to 100 million OLED panels from Samsung Display in 2018, with 25 million to be used by the current iPhone X and the remaining 75 million for the next-generation OLED models to be launched in 2018 – one being a 5.8-inch model and another a 6.5-inch one, indicated the sources.
Apple is expected to ship three new iPhones this fall: 5.8- and 6.5-inch OLED models, and a cheaper 6.1-inch LCD alternative. Reports indicate that with new larger models in-bound that Apple would need to sell the 5.8-inch OLED model for less than the current iPhone X’s $999 starting price tag.