Samsung Display to invest over $7 billion to supply Flexible OLEDs to Apple for future iPhones

“It is heard that Samsung Display will supply Flexible OLEDs (Organic Light-Emitting Diode) to Apple for iPhones,” The Electronic Times reports. “Maximum of $7.47 billion (9 trillion KRW) of plant and equipment investment is expected.”

“According to [industry sources] on the 13th, [the] contract between Samsung Display and Apple regarding Flexible OLED Panels for iPhones has practically been decided,” The Electronic Times reports. “Samsung Display will provide the most supplies for Apple’s iPhones’ panels that are changing from LTPS (Low-Temperature Poly-Silicon) LCD (Liquid Crystal Display) to Flexible OLED.”

The Electronic Times reports, “Samsung Display has decided on the size of investment to extend current facilities with Apple and will receive orders from Apple starting from end of 1st quarter at the earliest.”

Read more in the full article here.

MacDailyNews Take: The multi-billion dollar contracts will continue while the IP theft persists!

Wait, what?

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18 Comments

  1. >The multi-billion dollar contracts will continue while the IP theft persists! Wait, what?

    Very few companies exist that can supply the technology Apple needs in the volume it needs it. If anyone else could do the order for what Samsung bid and build them to the quality that Samsung can, Apple would have gone with them instead. I’m glad Apple is choosing to be practical and pragmatic rather than make a point that would potentially delay the OLED iPhone by another generation or two.

    1. It is futile to explain things to MDN. For instance, MDN complained for years about Apple using Samsung to fabricate their A-series CPUs for iOS devices. In 2015, Apple branched out and split the new processors between Samsung and another company. The next thing you know MDN is complaining that the chips are not identical (one fabbed at 14nm and the other on a 16nm process, I believe). There is no pleasing MDN.

      When you get to the scaled of Apple and are selling 200+M units per year of cutting edge technology, you take the components where you can get them. And Apple is probably getting a great deal, since Samsung needs fewer components for its Galaxy and Note phones nowadays.

    2. I disagree. With the amount of money Apple has available, if they really wanted to find a another source they could and would. The Koreans have very little honor when it comes to business – something to do with being downtrodden or something. To continue giving them business, as Apple has, is in my view insanity. They use Apples purchases to refine processes for components they us in their own final product that they sell to compete with Apple.

    3. That is mostly bullshit. Apple will be put at a disadvantage in 2 ways: 1) OLEDs volume produced by Samsung will also be used in Samsung’s OWN devices at cheaper cost than will be available to Apple.
      2) No market differentiation between Apple’s offering and Samsung’s device offering. Samsung will just put the same OLEDs on it’s OWN devices and claim technological parity with Apple. This really only helps Samsung mobile stay relevant.

      With Samsung now cloning everything from Apple Pay to TouchID to LivePhoto, they should’ve been kicked to the freaking curb YESTERDAY. This lame acquiescence to Samsung only serves to embolden other companies to attack likewise seeing that the Apple giant really has no teeth and that there are really no consequences to stealing IP. I’m NOT on board with decision at all..

  2. If you were an executive at Samsung and not able to make a sizable profit selling phones, why not place all you efforts into being the primary first tier supplier to a company that is making sizable profits in phones? And perhaps other components from that same company?

    Phones seem to be a hobby for Samsung, financed by their other products.

    1. You seem to be overlooking the fact that Samsung used to be the first tier supplier for many Apple components and used to make a huge profit from doing so. However Samsung’s executives decided to put their effort into treacherously abusing that relationship with Apple in order to make copies of iPhones.

      That handset manufacturing venture hasn’t worked out too well for Samsung and now they are having to deal with a far less profitable mobile phone business than they previously enjoyed, combined with a drastically reduced order book from Apple.

      Apple felt obliged to reduce it’s reliance on Samsung. Apple invested in rivals such as TSMC who have rapidly caught up with or eclipsed Samsung. Samsung no longer enjoys a monopoly as a supplier, so has to compete by offering better products, larger quantities or a lower price. Apple is now able to play one supplier off against another and get the best deal possible.

      Phones may have ended up as little more than a hobby for Samsung, but dishonesty is a way of life for Samsung and they’re now paying the price.

    1. Rather, Samsung has made themselves essential to Apple in a way that no one else could. That’s why Apple uses them, and that’s why they still exist. Win-win. From technical expertise, to scalability, to volume production, there is no other company that can meet Apple’s demands (there are other companies that Apple uses, of course, but Apple needs them all – even Samsung).

  3. “According to [industry sources] on the 13th, [the] contract between Samsung Display and Apple regarding Flexible OLED Panels for iPhones has practically been decided,”

    Something that is a very regular occurrence is that deals involving Samsung are announced by Korean industry insiders before they are finalised. The facts often turn out to be quite different from the rumours.

    I can remember when Korean sources were jubilant that Samsung was about to get the contract to supply all of Apple’s CPUs, but when the dust had settled, it emerged that TSMC and Samsung were each awarded part of the contract.

    I’m always puzzled that suppliers do not maintain secrecy while contracts are still being negotiated. Contracts that are ‘practically decided’ are irrelevant, the only contracts that matter are those that are actually signed.

  4. How can you get an order to make parts at the end of the first quarter, and then spend $8 billion in time to make parts by this summer? These things take time, even in high tech. The tooling has to be made to order, even if you already have an empty building waiting to house them with all the needed utilities…

  5. Still trying to figure out if OLEDs make sense for Apple. The all white OS reduces power savings of OLEDs. They still do not preform as well as the displays Apple are currently using and still tend to have over saturated colours.

    Micro-LED would seem to be the future, but perhaps to far away.

  6. Apple’s depended on Samsung for iPhone components since the beginning of iPhone production. Why don’t you build a factory capable of producing 200 million+ parts a year and let us know how easy it is?

  7. I personally do not see a problem with Samsung supplying components to Apple — Apple is in control of how these components are manufactured.

    Secondly, if Samsung wants to build competitor products that run on Android, so be it. Nothing wrong with competition.

    I’m using the same iPhone 5 that I bought back in November of 2012, having only a battery issue which was easily serviced under AppleCare.

    My Dad bought 3 Android phones in that time, got frustrated, and then bought the iPhone 6s Plus, which he loves.

    He won’t go back to Android. Go figure. 🙂

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