“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
Any what happens with the next great technology comes along and they are stuck with an old technology factory?
Narrow mindsets like yours flourish D. I’m proud to knock down the (4) 5star ratings 😉
Does your mother know what an asshole you are?
Sorry, but that’s a foolish comment what do the million other companies do they retool it.
The equipment Apple purchased is used for OLED displays, but it is also used for many other things. I’d guess that Apple is buying the equipment to start manufacturing their own micro-LED displays. This makes much more sense given Apple has been working on the technology for a few years now after buying LuxVue.
Good. Apple should be making as many of its own components as possible. Apple can easily afford to buy the machinery and be able to pay back the costs within a couple of years. It seems somewhat risky to have to depend on a rival for components. These new machines Apple is buying is just like when they bought all those CNC milling machines in the past. Apple is going to need a steady supply of OLED panels so it’s trying to ensure that supply. It makes good sense to do so.
The next thing Apple needs to do is perfect battery tech. All that coming mobile AR/VR is going to need the best battery tech money can buy.
When was the last time Apple actually manufactured anything in-house? Seems like they’re stepping into an area they have very little experience in.
Also just having the machines (unlike a nuclear arsenal) doesn’t necessarily mean production yield to compete will be good.
Nevertheless, hopefully Apple will be able to make it work.
Either MDN has multi- personality disorder or the Russian trolls are at work again. From Apple or Bust to spit on Tim Cook again, if I enjoyed Apple and/or Tim- bashing, there are plenty of nerdy PC- Pee or misguided techie forums I can find it. Think for a second- if Apple makes mistakes, or is inept, do you think the competition is not? How ’bout those platypus Surfaces? Them exploding Samsung products? Geniuses on greener lawns, eh?….
MDN is, of course, correct. That seems to piss you off. Tough shit.
Apple obviously should have shut out Samsung long ago. A CEO with a killer instinct would have stepped on Samsung’s neck, not awarded the thieves contracts worth billions year after year after year.
Brutal Truth^2. …..Way way way easier said than done….
But lets assume they could have pulled off something in that nature as quickly and as easly as u suggest….
It is not Samsung who has been the biggest Thief .,.
The Real Thief who has damaged Apple the most is GOOGLE(abcd..) and an A-hole called Eric Mole Schidth !
If i had a choice to step on one of these comps… it would be Google!!…
Hey, but since it is so easy why not both of them ….. 😉
Dont underestimate Tim…( no one is flawless … Jobs wasn’t either )
It’s highly unlikely that Apple will be making its own iphone/ipad displays. Most likely these are either intended for R&D, which Apple does a lot of, or for the MicroLED displays for the Apple Watch, at most. Otherwise, they’re intended for an OEM of Apple. Apple often buys a lot of equipment that they then lease to an OEM who can’t, for one reason or another, buy it. Apple then gets discounts on pricing. This is well known.