“Interesting news came out on July 24 regarding Apple,” Roman Luzgin writes for Seeking Alpha. “The corporation reportedly purchased OLED production equipment to develop and manufacture its own OLED displays for the future models of the iPhone. It is stated the research and development facility will be established in Taiwan in order to reduce the dependence on external suppliers. The equipment bought by Apple includes chemical vapor deposition [CVD] machines from Korea-based Sunic Systems.”
“The move is going to decrease Apple’s reliance on Samsung, which is claimed to be the sole supplier of OLED displays for the upcoming iPhone 8,” Luzgin writes. “Moreover, Apple’s move seems to be negative for LG, another Korean company that is involved in the production of OLED displays. It was reported at the end of May, LG made a significant investment of about $3.5 billion in its factory in Paju in order to construct production lines capable of manufacturing OLED displays in 2018. LG claims to have a Plan B in case the corporation will not get orders from Apple. The company can satisfy the needs of Chinese smartphone makers that tend to switch to OLED, ‘boosting demand for small display panels.'”
“If Apple is able to establish its own manufacturing process, such corporations as LG and Samsung will lose their bargaining power over Apple. As a result, the price of a panel paid by Apple is likely to decrease. Since the corporation sells about 50 million handsets in just a quarter, every dollar saved on a display leads to a considerable amount of profit,” Luzgin writes. “Moreover, if Apple is successful with the in-house manufacturing, the company’s margins should grow considerably… The cost of display amounts to $43 for the iPhone 7, which is about 20% of the total cost. Therefore, the effect of cutting the cost of a display would have a significant effect on margins.”
Read more in the full article here.
MacDailyNews Take: While Samsung Display’s OLED orders are going to shoot straight up with Apple’s next-gen flagship iPhone, here’s hoping they fall right off a cliff ASAP!
Sleep tight, Samsung, you derivative bastages!
You want to know what’s really unbelievable? That, after half a decade, at least, of Samsung’s slavish copying, Apple continues to do billions of dollars of business with Samsung. Apple, which has enough money to build or bankroll anything they want, like a chip fab, or a touch screen display factory, or anything they could ever need.
Something just does not compute here. If you get mugged, do you buy the leather for a new wallet from your mugger while pressing charges? If you’re Tim Cook, you do.
Apple could have – and should have – dropped Samsung like a bad habit years ago. Not one red cent should be going from Apple to Samsung today. It’s a travesty. It’s poor planning. And it’s bad business. The only conclusion we can draw is that Tim Cook, operations genius, boxed Apple in and is now stuck; beholden to a den of thieves. That sort of “decision making” doesn’t bode well for Apple’s future. It really doesn’t. — MacDailyNews, June 1, 2012
Apple sets up OLED panel R&D line in Taiwan to reduce reliance on Samsung Display – July 24, 2017
Apple in talks with LG Display for up to $2.62 billion investment in OLED iPhone display lines – July 3, 2017
Samsung is building the world’s largest OLED plant to supply Apple’s iPhone – June 30, 2017
Samsung to supply OLED displays for Apple’s 5.28-inch iPhone 9 and 6.46-inch iPhone 9 Plus – May 30, 2017
Next-gen iPhone’s OLED display puts blue spotlight on Japanese supplier – April 24, 2017
Apple signs two-year contract with Samsung for up to 92 million OLED iPhone displays – April 7, 2017
Apple orders 70 million OLED panels for next-gen flagship iPhone – April 3, 2017