While LG and BOE are vying for Apple's OLED business for 2018-2019, Samsung Display will reportedly supply Apple with between 180 to 200 million flexible OLED panels for the iPhone in 2018, according to supply chain sources. That's around four times the amount it supplied this year, and translates into roughly US$19.8 to US$22 billion revenue at the supply price of US$110 based on calculations by IHS Market -- including the price of the cover glass and touch sensor.
This year, Samsung Display has reportedly supplied around 50 million panels for the iPhone X. Improved yield rates at Samsung's A3 panel production lines are being cited as the main reason behind the display maker's decision to increase supplies to Apple next year.
Earlier this year, the A3's yield rate was around 60 percent, but it stood at over 80 percent in the latter half of the year.
As Samsung closes in on a 90 percent yield rate, they'll be able to churn out around 224 million 6-inch panels per year. The display maker had initially considered supplying to Apple by investing in its A5 new lines, but decided to stick with its existing lines.
Today's supply chain news supports our February report titled "Apple Reportedly Signed a Second Deal with Samsung for Additional OLED Displays for Next Gen iPhones."
With LG, BOE and others trying to gain OLED display orders from Apple, you have to wonder if Apple intends to continue to push OLED displays further down the iPhone line and/or begin inching them into higher-end iPads.
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