Forced to buy at Samsung, Apple (and its customers) pays very expensive arrival of the OLED screens on its iPhone

According to the latest estimates of analyst Ming-Chi Kuo, if the price of the iPhone far exceeds 1000 euros, this is because Samsung charges its expensive OLED screens to Apple. But the latter has no other choice at the moment.

An iPhone concept 8. Image credit: iDropNews

It's a secret of the Punch, the iPhone Edition (or iPhone X) will be Apple's first smartphone to be equipped with an OLED screen. To supply itself in OLED panel, Apple has however had no other choice than to buy from its competitor always, Samsung. The latter is the only one to have screen manufacturing chains capable not only of ensuring sufficient production to absorb the American demand but also of providing the best OLED screens of the moment. The Galaxy S8 and Note 8 have indeed proved the know-how of Korean in this field. This problem is presently only for the iPhone Edition, the iPhone 8 (or iPhone 7S) should retain LCD tiles.

With the Galaxy S8, Samsung proved to be the best supplier and manufacturer of AMOLED screens in the world.

Samsung Display: a supplier of quality screens … that are expensive!

The problem, says Ming-Chi Kuo, is that Apple now has only one supplier of OLED displays, Samsung Display, and that it pays very dear. According to his estimates, Samsung takes advantage of its position as sole supplier to bill on average each screen of iPhone Edition between 120 and 130 dollars. As an indication, a 5.5-inch LCD screen of iPhone 7 Plus costs about 45 to 55 dollars per unit.

• Read also: iPhone 8: design, technical sheet, price, here is all that we know about the device that will celebrate the 10 years of the brand

This famous screen edge-to-edge will therefore have a strong impact on the average price of iPhone components … And so on the final bill of the consumer. This is also why the iPhone Edition will be sold as expensive. According to the latest rumors, the latter would be sold 999 dollars excluding tax in the United States, and surely more than 1160 euros with us.

A 3D rendering of the iPhone 8. Image credit: Quinton Theron

Apple invests billions in LG's screen factories

Apple would however be well aware that this situation is unsustainable in the long run. The US has thus contributed to the financing of new factories producing OLED screens at LG, to the tune of 2.7 billion euros according to the sources of the newspaper Korea Economic Daily. A participation that will allow it to diversify its suppliers and inevitably lower the price of these screens. According to the same source, Google would also have participated in the financing of these same factories, in the amount of 1 billion dollars. But will LG be able to produce screens as successful as those of Samsung. Answer in the next two years to come.