Apple bargaining Samsung on OLED displays for iPhones
Market watchers expect two things out of Apple from September: that an iPhone model with an LCD will do bonkers well and; that two differently-sized pricier OLED models will bring up the rear. Some are calling for a sell-through ratio of approximately 6 to 1 to 1, respectively.
One would think that with an order for a rumored 160 million panels from Samsung Display for the iPhone X, Apple would still be stuck with many millions of 5.8-inch panels — thanks to poor sales — that could be carried over to this year’s 5.8-inch model. But further rumors of the second size, 6.5 inches, would require fresh supplies.
In any case, Digitimes is now reporting sources that Apple has come back to Samsung Display, which is hurting right along with the iPhone X, wanting to negotiate a lower price for its wares — from $110 per unit to $100. Considering that the display on the iPhone X was a third of the total bill of materials, it seems like a good place to start cutting costs. Analysts say that with a slow-down in demand and increasing price pressure from OLED display manufacturers in China will help Apple’s case.
The sources say that Apple received only 50 million panels last year and now looks to get 100 million for this year — 25 million for remaining iPhone X demand and 75 million for the new models.