There is no denying that Samsung is one of the best, if not the best, smartphone OLED manufacturer in the market right now. Because of this very reason, other companies including Apple tend to purchase displays from them. However, with the upcoming launch of iPhone 8 or iPhone X, it seems like Apple will have to look for alternate solutions for iPhone 8 OLED.
According to analysts, Samsung is the only supplier which will be making iPhone 8 OLED, putting Apple in a serious bind due to Samsung’s monopoly. Not only will the rival tech giant be able to dictate their own price for each unit of OLED but is also bound to cause supply issues, despite Samsun having shown a lot of consistency in the past when meeting demand.
It is rumored that for the next iPhone, Apple is paying Samsung up to $130 per OLED which is close to 3 times what the company paid Samsung for the LCD used in iPhone 7 Plus. Of course as the manufacturing cost rises, so does the amount consumers have to pay as is evident by the $1000 expected price tag of the next iPhone.
As for the supply constraints, it is highly likely that for the initial few weeks, the Apple smartphone will suffer from stock shortages simply because of lack of iPhone 8 OLED display units. These rising issues all point towards one solution that Apple seriously needs to look for alternative sources to get their display units.
While this may not be an ideal scenario especially where consistency in quality is concerned, it is definitely better than having customers pay a hefty premium for new smartphones simply because the manufacturers are going for higher profit margins with their sales.
An ideal choice in this case would be LG and it seems like Apple realizes that too as the smartphone manufacturer is investing heavily in the company so they can enjoy LG’s OLED displays for future iPhone iterations. LG being no slouch when it comes to display quality as seen with the LG V30 smartphone is an added bonus.