Samsung is expected to get $22 billion from iPhone X’s OLED displays. After making a great success story in the house of Apple now it appears that iPhone X will bring good luck to Apple’s biggest rival Samsung. Just for a quick recap, the OLED displays used in iPhone X are in fact manufactured by Samsung.
A report from Investor indicates that Samsung could generate about $22 billion from the sales of OLED displays used in iPhone X.
We all are familiar with the fact that Samsung is famous for its Display which is an important part of the Samsung Electronics. Apple is expecting to buy 180 to 200 million OLED panels from Samsung, which will be used in iPhone X.
Till now in the year 2017, Samsung has shipped about 50 million OLED panels to Apple. Initially, due to following standard quality principle Apple’s iPhone X was facing supply constraints which ultimately resulted in a reduced yield of as low as 60%. However, with the passage of time the problem was set on, as later yield fairly enhanced.
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Korea Herald revealed in a new report, almost 80% the yield rate boost up later this year and is at the present reaching close to 90%. An industry forecaster told Investor that at a 90% yield rate, the company is expecting to create 224 million panels each year.
As the statement of report states,
“It looks like the yield rates have reached almost 90 percent, and the fact that Samsung reached such levels even after the world’s highest quality flexible OLED standards were applied, is quite significant.”
According to the report, Samsung initially planned to invest in its A5 OLED lineup to supply Apple with the iPhone X displays. However later on, suspecting the manufacturing issues Samsung determined to stick with the on hand A3 production line.
Moreover, apart from the growth of OLED panels for iPhone X, Samsung is also expecting improved and bigger sales of its small-to-medium sized display, which will add huge revenue too.
On the other hand, Apple was also bearing in mind LG’s OLED display to use in iPhone X. However after the analysis then it relied upon Samsung in keeping view the suspected supply restraints.
For now in 2018 Apple will continue to maintain their business relationship for the year but tech giant is also planning to put up its own OLED panel manufacturing plant, although it is not going to happen anytime earlier.
