Apple and Samsung sign a $9 billion 2-year contract for OLED iPhone display panels


Several new reports suggest that Apple and Samsung have sealed a two-year deal for the production and supply of $9 billion worth of OLED display panels. Media outlets such as Chosun Biz, ET News, and DigiTimes have all taken notice of the latest proceedings, stating that the terms of the new contract require Samsung to ship between 70 and 92 million screen panels to Apple in 2017 alone. 

As you may know, Cupertino has elected the Seoul-based manufacturer as its sole OLED panel supplier for the upcoming avant-garde 10th anniversary iPhone model. These latest developments follow up on earlier reports from this week which stated that Samsung is spending $9 billion to expand its OLED screen production operations following an Apple order for 70 million curved displays

If these numbers are correct, this means that about 40% of the iPhones shipped throughout 2017 will come with OLED screens, given that Tim Cook & Co. currently ship around 200 million handsets per year. Apple is expected to break all sales records with its new smartphones, and certain analysts expect that Cupertino will manage to ship as much as 100 million units of its new models between September and the end of the calendar year. 

FEATURED VIDEO

85 Comments

1. Phonehex

Posts: 766; Member since: Feb 16, 2016

Each display costs Apple approx 100$ US ? Wow thats expensive !!

17. Cat97

Posts: 1923; Member since: Mar 02, 2017

Half that, the deal is for 2 years, the quantity is for 2017 only

37. Khyron

Posts: 398; Member since: Sep 28, 2015

I DONT KNOW THEY INVESTED 9 BILLIONS TO EXPAND BUILD PLANTS AND THEY SIGNED ONLY 9 BILLIONS WITH APPLE so WHERE IS THE BUSSINESS HERE?

42. Macready

Posts: 1824; Member since: Dec 08, 2014

This falls with the assumption that those new plants will only supply to Apple, when in reality they are expanding (as also mentioned in articles) to supply to growing demand from the rest of the market too, possibly including switching to 100% OLED (70% now) themselves. The total sales of phones is still well north of 1 billion per year, so plenty of potential.

66. marorun

Posts: 5029; Member since: Mar 30, 2015

Khyron take a chill pill and relaxe man.

2. Hallyu

Posts: 790; Member since: Jul 21, 2015

Good for you Apple. From now on learn to behave and respect the master Samsung or you'll end up getting crappy OLED from China.

3. Nopers unregistered

lol what? Where did you get the idea that Apple disrespect Samsung? They don't.. Samsung is just a manufacturer for Apple, they produced A9 chips for Apple.

24. Hallyu

Posts: 790; Member since: Jul 21, 2015

Nah, obviously your rotten fruit is begging Samsung for its best quality OLED panels because its knows exactly that it can't go alone so it needs Samsung's help. But Samsung will be smart and give them the second class OLED.

33. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

They have. Where have you been? They sued them over frivolous patents that nearly all of them but 2 have been overturn in all courts, except in the USA. HMMM! Even now, the USPTO, nullified, several of the patents Apple sued Samsung over and that is what led to the payout reduction. Samsung appealed to the US Supreme Court and got its proper justice. The USSC heard the case and then made a decision and sent it back to Judge Koh to be settles. When it is finally done, it is expected that Apple will get less than $200M from what was an original $900M. Apple saw Samsung was about to provide what it never had, REAL COMPETITION and was only trying to slow them. It failed. Because of this lawsuit, Samsung saw a huge increase in sales. When all these troll try to claim Samsung makes cheap junk, I laugh because if that was true, the the iPhone is what I said...GARBAGE, because its filled with their term "cheap junk" mostly made by Samsung. Samsung fabricates the A chip, Apple uses their Internal storage and RAM in all their products and now they are using OLED displays. That is 3 major components from Samsung. Apple just paid Samsung $9B just for the displays. Anyone who claims Samsung makes cheap junk is a FOOL.

50. mikehunta727 unregistered

TSMC is supposed to make 100% of A11 chips, they already make 100% of A10 SoCs, they moved away from Samsung in A10. You fail to realize Apple and Samsung actually both need each other a lot, Apple would suffer without Samsung and Samsung would suffer without Apple pretty immensely on both sides

55. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I understand the relationship perfectly. Without Samsung Appel ceases to exist as the company they are now, without havign other means. I Samsung has and makes it oen products. Dude, they make more than just computer componenets. They make military weapons, they make ships, they once had the worlds tallest building, they make vehicles, they make airplane engines, appliances and more. Samsung will NEVER need Apple. But will happily takes Apple's money. You are confused. They have a business relationship where Apple needs Samsung and pays them for whatever they agree too. It's not Samsung coming to Apple. Samsung does not need Apple. Its simply mutual business relationship.

58. mikehunta727 unregistered

I never said Samsung does not have other divisions. I understand Samsung's business model much better than you do. I am fully aware of the many other fields they are in and what they do and their top-down strategy They both need each other a ton, because its massive bucks for Samsung and great for Apple. Stop fooling yourself with such fanboy bias delusion

60. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

"You fail to realize Apple and Samsung actually both need each other a lot, Apple would suffer without Samsung and Samsung would suffer without Apple pretty immensely on both sides" That is false. By your own statement bruh. Like you said, Apple didn't use Samsung for the A10. NO DUH. How much money did Samsung lose from lsoing APple's CPU business? NOTHING> Samsung still profitsed because they replaced that business with Qualcomm. Who makes chips for 5 times as many phones as Apple does. Consider this FACT Apple designs one chip for its own p[hone. Samsung own Exynos goes into more phones than Apple makes. The SnapDragon is use by how many OEM's dude? Now, to be fair, Samsung does not fab all of Qualcomm stuiff. However they do fab Qualcomm's latest 820/21 and 835 chip. Other than Samsung 's own S8 and Note 8, what other phone is gettign the 835? Not sure. But I do know this. More phones will have the 835 than how many will have the A10 and A11 combined. And Samsung is Qualcomm's largest business partner right now. Also make sure you save this post, because I will give you the future right now. Foxconn bought out Sharp Display. Apple has already invested money into Foxconn to help grow with OLED manufacturing capability. I would guess it will take about 2 years to build factories, get machines and get the tooling down to be able to increase production. So for the 2 years Apple is paying Samsung this contract to cover that time so they can stay relevant. Now Samsung is talking that money and also increasing yeild. But Foxconn will mostly be providing displays to Apple. Samsung will be providing displays to itself several Chinese OEM's and more. Samsung will be making far an away more displays vs Apple will be through Foxconn. So in 2 years when Apple drop Smaung display, Samsung will already have enough business to compensate. Samsung is 90% opf the OLED display business dude. Who is goign to MATCH that? Not APple. Apple makes 200M phones. Samsung makes 300M of its own and stuff for others too. Samsung does not need Apple PERIOD. You can claim whatever BS you want. Samsung is older than Apple, has made far an away more money than Apple and will continue to do do because Samsung doesn't have all its egg in one basket. Apple makes 3 products that are in one field, computers. Samsung makes 100's of product in 100's of field. You need to recognize dude. You act liek Samsung Electronics specifically only makes computer stuff! DERP!

62. mikehunta727 unregistered

I dont act like Samsung makes only computer stuff lmaooo what a shill. And Samsung never "replaced that with Qualcomm" they been serving Qualcomm for a while now and produce most of their SoCs's And LOL, No , more devices won't have 835's than the A10/A11 combined, that is truly delusion talking. Lol please I dont care for your "insight", you say wildly wrong and fanboyish shit everyday, why would anyone want insight through your heavily rose colored glasses? No thanks pal, keep the rambling to yourself

68. marorun

Posts: 5029; Member since: Mar 30, 2015

TSMC A10 chip have a tendency to overheat lol.. Iphone 7 if the first phone to seriously throttle Mikehunta727. So TSMC not thats good. IF apple wanted to have the best soc architecture they would work with intel.

75. mikehunta727 unregistered

What are you talking about? The A10 throttles the least out of any SoC out there on the market. GPU throttles as much as a S821 and A10 CPU barely throttles And no, Intel has tried and failed to get in the ARM SoC business, their x86 doesn't scale down well to 1-7 watt TDP range, which is why ARM architecture dominates them... On the other hand... If Apple were to utilize Intel's semicondcutor fab to produce their SoC's , that would be something pretty special

4. Xperia14

Posts: 1208; Member since: Sep 01, 2015

"respect the master Samsung" LOL

7. maherk

Posts: 6939; Member since: Feb 10, 2012

I hope for your own sake that you are trolling, and not really this brainwashed and this dumb.

9. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

He is brainwashed and dumb and one of the worst trolls here in PA.

11. Tech_fan

Posts: 94; Member since: Mar 28, 2017

he is definitely far better than you DUMB SHEEP.

15. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

https://imgur.com/gallery/DZn2Qhd Speak of the troll and it shall appear.

19. Tech_fan

Posts: 94; Member since: Mar 28, 2017

KID your sleeping time arrived, kiss your parents, wash your teeth then go to bed..momomo

26. sissy246

Posts: 7124; Member since: Mar 04, 2015

Pot calling kettle black.

31. phonearenarocks

Posts: 606; Member since: Mar 26, 2015

Well! Don't get me wrong, I am not sure about how Hallyu is but, I think of you as one of the biggest flagbearers of Apple and a HHHUUUGGEEE critic of anything other than it.

34. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

No! That would be you. Samsung is Apple's Master. BEcause the"M

23. Hallyu

Posts: 790; Member since: Jul 21, 2015

Where's the old maherk? Clearly you were brainwashed and bought by those rotten fruity Darth Vader guards.

25. sissy246

Posts: 7124; Member since: Mar 04, 2015

No, he's really that brainwashed.

8. Tech_fan

Posts: 94; Member since: Mar 28, 2017

i dont think chinese can make OLED display so far. after years ISHEEPS will get a high standard display

10. Guaire

Posts: 890; Member since: Oct 15, 2014

There are several Chinese OLED manufacturers.

35. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

You are right, they cannot, at least not in large quantities. PA already posted an article that stated, several Chinese OEM's who make phones are paying Samsung for their OLED displays. Apple is paying $9B. Other OEM's are likely paying roughly 1/3 of that each considering they have lower yield requirements vs Apple and Samsung's own phones. Samsung is the OLED leader even over LG. After all, why didn't Apple go to LG for OLED displays? HMMM! Samsung is the BEAST and no one can do it and yield in the quantities needed. That is where Samsung has the upper hand. Hwoever Apple only needs Samsung for now because Apple is workign on ist own deal with Foxconn, who bought out Sharp Display. Once Foxconn can get up to production speed to meet Apple demands, Apple will soon be splitting the display business at first with Foxconn and Samsung. After that Apple will again try to drop Samsung, which as we seen only last maybe a year and a year later they will come crying back to their Master. Samsung is the BOSS here! GET OVER IT! Until Apple starts actually makings its own stuff, which will be NEVER, whoever they buy from is their BOSS> Samsung is top BOSS of all Apple's BOSS'

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.