This is why Apple's own OLED will be detrimental to Samsung

For iPhone 8 Samsung alone will supply the OLED display panels to Apple but in future, this dependency might change.


Apple is delving into a new major change in terms of the making of iPhones and apparently, the change is going to hit Samsung's business hard. In future, Apple might stop being dependent on Samsung for the supply of the OLED display screens for its premium smartphones.

Samsung, undoubtedly, turned a triumphant holiday quarter last year, despite the Samsung Galaxy Note 7 debacle that cost the company billions in lost sales and cleanup expenses. Following that, the company went on to give an incredible performance with an even bigger first quarter this year and the awaiting second quarter results would probably surpass the results of the first one.

At this possibly the best stage of the business sales of Samsung Galaxy S8 and S8 Plus must have been of help, however, the main reasons behind this exorbitant success of the South Korean consumer electronics giant are their various component businesses. Sales of memory chips, processors, display panels, and other key components have been increasing at a tremendous pace lately, and thanks to Apple's iPhone 8, it will grow even further.

Apple will incorporate OLED display panels into the upcoming iPhones and no other supplier than Samsung could match their demand in terms of production volume, which means Samsung will be the sole supplier for iPhone 8's OLED displays.

However, it's quite obvious that the Cupertino-based tech giant would not try to take a way, which would lead to tens of billions in lost sales for its top rival, Samsung.

According to a report by Korean-language ET News, Apple is taking steps toward an OLED future, where it would be far less dependent on Samsung. The company is working on developing its own OLED display technology so that it can move away from Samsung as its sole OLED supplier. Reportedly, the company has purchased its own chemical vapor deposition (CVD) machines from a South Korean company called Sunic System. These machines are key to research and development surrounding OLED display panels. The company most probably won't manufacture its own panels but even in the past Apple had purchased or leased equipment and worked closely with manufacturing partners in order to perfect components for its devices. Apple's A series chipsets are a perfect example of that.

At this moment it's not clear as to how Apple's OLED tech would differ from that of Samsung, which is clearly the leader in this field right now.

This article was first published on July 25, 2017
Related topics : Samsung