Apple's iPhone 8 OLED display orders may hit its margins with $50 million this quarter


According to Cowen & Company analyst Timothy Arcuri, Apple's move to OLED displays for the iPhone 8 model will hit its gross margins with the power of a $50 million expense. The margin are expected to stay a flat 39% year-on-year in the March quarter precisely because of this OLED outlay. Otherwise it would have been higher since the price of components typically falls over time, and the profit from an iPhone sold becomes larger with each passing quarter.

As previously rumored, the iPhone 8 may sport a 5.8" flexible OLED display sheet that will be curved around all sides for a "wraparound" design, while various proximity, light and other sensors, as well as the finger scanner, will somehow be embedded in the front. There is still a chance for Apple to use OLED panels in all three models, the eventual iPhone 7s and 7s Plus included, provided that Samsung and other smaller OLED screen makers, are able to churn out the goods with enough volume and quality to satisfy a massive launch like that of the 2017 iPhones. 

For this past quarter, the analyst expects shipments of 76 million iPhones, which is flat year-on-year, with an increase in revenue and profits thanks to a larger proportion of 7 Plus units. We'll see if he is right when Apple announced quarterly results at 2pm PT/5pm ET today.

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15 Comments

1. ibend

Posts: 6747; Member since: Sep 30, 2014

it's not iPhone8 it's iPhone7s btw, is that the correct source? that source didnt even mention OLED or iPhone8 :-/ and that source is really old.. 17/01/04http://appleinsider.com/articles/17/01/04/apple-to-reveal-fiscal-q1-2017-results-on-jan-31

2. Podrick

Posts: 1285; Member since: Aug 19, 2015

Samsung will copy this as usual. /s

5. GreenMan

Posts: 2697; Member since: Nov 09, 2015

Samsung has already copied this feature, mate...! They copied it nearly SIX YEARS AGO...! What a shame, indeed... Apple would never do copy/paste... #Sucksung #Shamesung #Boo #NoOneMakesMoneyWithAndroid What a rip-off... Oh well, G'Day!

13. Tabby_Tiger

Posts: 305; Member since: Jan 23, 2017

"Apple's iPhone 8 OLED display orders may hit its margins with $50 million this quarter" Samsung ain't going order $50 million of OLED displays just to copy Apple............What are they copying in this case? That said, I am glad both companies are making bigger and bigger phones and approaching 6 inches in screen space.

3. Mitsjke

Posts: 29; Member since: Mar 28, 2015

Even if they make it out of gold with diamond buttons: without a 3.5mm port it's a no-go.

4. GreenMan

Posts: 2697; Member since: Nov 09, 2015

Does't matter... No matter what Apple do to iPhone 7S or 8, it won't be able to hold a candle against The S8...! My S6, although nearly 2 years old, is pretty much neck and neck with The iPhone 7 when it comes to performance (Except for gaming, of course) and camera result... And lets not talk about customization because that'd be a little unfair... I'm done with iOS... It's only saving grace is the gaming performance, but since I only play Angry Birds, it doesn't bother me much, if at all... But people will keep selling their kidneys for a brand new iPhones...! Two word: BRAGGING RIGHTS... My S6 is definitely not as "exotic" as an iPhone 7... Oh well, G'Day!

6. Plasticsh1t

Posts: 3106; Member since: Sep 01, 2014

Is there any news if the newer generations of iPad will support the OLED display?

7. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Suddenly ifans will stop complaining about burn-ins lol

10. iushnt

Posts: 3105; Member since: Feb 06, 2013

No, they will say Apple did it right that's why they waited so long to adopt..

11. Ordinary

Posts: 2454; Member since: Apr 23, 2015

Samsung rushed it

8. apakalo1

Posts: 67; Member since: Nov 19, 2015

Apple can slap in Black Diamond display (not even OLED ), we the true techies do not care. It's a pity this fruit company become successful in scamming and defrauding their customer (don't blame them, cos majority aren't techies and are girls).

15. guests

Posts: 196; Member since: Jun 19, 2016

"don't blame them" No, we should blame them i-maggots for their stupidity.

9. apakalo1

Posts: 67; Member since: Nov 19, 2015

If Samsung or LG are the manufacturers of iPhone 7; it would have been sold at most $400 considering the inferior camera sensor, display, RAM and so on.... Apple is indeed behind. But their dump customers DO NOT care. Lol Thumbs up to iPhone users

12. techbuttcheex

Posts: 203; Member since: Jul 25, 2015

Apple making 3 SKUs of a new generation of iPhone seems foolish at best. iPhone's main advantage is how it creates a standard for the industry to follow. An LED iPhone 7s with a flat panel display is going to make the iPhone line up look like a confusing mess. If they can't source OLED for more than one SKU, then stick to one SKU. And btw if you're doing away with bezels, the phone should become smaller, not larger.

14. R-vjn

Posts: 301; Member since: Jan 07, 2013

I just hope they name it the iPhone X (as its the 10th anniversary of the iPhone). Also, I hope the OLED panel with have QHD resolution with their signature calibration

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