“Apple Inc. is developing production plans for its next iPhones that stress cheaper liquid-crystal displays more than analysts had expected, showing consumers’ sensitivity to the price of smartphones,” Takashi Mochizuki and Yoko Kubota report for The Wall Street Journal. “Apple expects LCD models to make up the majority of iPhone sales in its lineup to be released this fall and plans to use the displays next year as well, said people involved in the Apple supply chain.”
“During a call with analysts last month, the company said the iPhone X was the best-selling of its eight smartphone models during the three months ended in March,” Mochizuki and Kubota report. “But most iPhones it sells are still LCD models, analysts say. The top-of-the-line LCD models are the iPhone 8, starting at $699, and the iPhone 8 Plus, starting at $799.”
“A key reason for the iPhone X’s high price [starting at $999] is the OLED screen,” Mochizuki and Kubota report. “Samsung Display Co. is the main supplier of that screen and its production yield has yet to surpass the more widely available LCDs. LG Display Co. is also likely to supply some OLED displays for the iPhones to be released this fall, but it has also struggled to boost yield, said people at phone suppliers. The OLED displays used in iPhones cost about $100 while the LCDs in iPhones cost about $40, estimates analyst Hiroshi Hayase at research firm IHS Markit.”
“Apple’s new iPhone lineup coming this fall includes two OLED models and one LCD model, people familiar with the plan have said,” Mochizuki and Kubota report. “Jusy Hong, an analyst at IHS, said he expected all three new models would share the iPhone X’s look to give consumers who own older devices the feeling of an upgrade.”
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MacDailyNews Take: As expected.
Ming-Chi Kuo: Apple’s next-gen 6.1-inch LCD iPhone to outsell next-gen 5.8- and 6.5-inch OLED iPhone X models – February 5, 2018