Apple's new $4.3 billion OLED display order to Samsung comes at $70 apiece, far cry from the $40 iPhone 7 panel

Apple's new $4.3 billion OLED display order to Samsung comes at $70 apiece, far cry from the $40 iPhone 7 panel
Back in April last year, we learned that Apple has secured a three year contract with Samsung to supply as many as 100 million OLED display panels in total. Given that just the purported OLED iPhone 8 is now expected to generate sales as high as 70 million units overall, Apple has now reportedly added extra 60 million flexible OLED screens to the contract, at the whopping cost of $4.3 billion. 

That's $71 per panel, which is a huge jump from the $40 screens Apple currently uses in the iPhone 7, and will inevitably contribute to the rumored $1000+ price of the upcoming anniversary edition. This also jibes with today's rumor that Samsung may be printing more OLED displays for the Galaxy S8 than the initial batch sales forecast, as it is trying to ensure adequate supply, provided that Apple's supply contracts have to be enforced in full, and the OLED machines bogged down for that in the next quarter or two.

source: The Investor

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54 Comments

1. asiansatan

Posts: 59; Member since: Sep 18, 2014

There is some Samsung in every Apple!

11. piyath

Posts: 2445; Member since: Mar 23, 2012

And there is some Apple in every Samsung too....lol $4.3 Billion NO KIDDING SON!

30. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Like what? Because Apple dowsnt make anything. So that wouldnt be possible.

44. nctx77

Posts: 2540; Member since: Sep 03, 2013

They make a crap load of money! That's what they make!

50. androidwindows

Posts: 216; Member since: Oct 04, 2014

Do you see Apple's money in Samsung's devices. Stupid respond is stupid.

46. kevin91202

Posts: 642; Member since: Jun 08, 2014

Sorry. No Apple in Samsung products.

2. Iodine

Posts: 1483; Member since: Jun 19, 2014

If they can cram in ther custom Tcon, variable refresh rate, super high brightness, True Tone and that fancy custom AR coating then it's a big upgrade by itself. And those were only things Apple already did so if anything new comes around It's nothing sort of incredible. Hope it's going to lead to a much thinner and efficient design. Still I will believe when I see it released. Btw: those price guestimates don't deserve to be posted anywhere.

27. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Yea....I don't think you know how display components work. Basically, someone invents all of that crap, Apple pays them to make it, and then Foxconn assembles it. Apple has literally no input into the creation of the tech unless it is their own in house SOC components.

32. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

We thats not entirely true. They paod Intel to male a chip smaller than normal. So that os Apple habing some input. I am sure whem Apple shops, they consider what featurws they need and what OEM has an available option, or close. I am sure componenet makers do add capabilities based on request and thr buyer simply pays.

31. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Apple doesmt make displays so they didnt put any of that in them. They are bought that way. The displays are made with those features.

3. Zylam

Posts: 1817; Member since: Oct 20, 2010

All the Samsung fanboy's pray for Apples demise, yet they don't have the ability to comprehened how much of a financial loss it would be for their beloved Samsung if Apple were irradiated today.

12. TheOracle1

Posts: 2304; Member since: May 04, 2015

True. But has it occurred to you that Samsung would also take a larger chunk of smartphone sales if Apple were "irradiated"? There's a silver lining in every cloud!

25. kiko007

Posts: 7493; Member since: Feb 17, 2016

$695 vs. $245. Those are the average CPPs of the two companies phones. The majority of people buy the cheapest of Sammy's offerings, and I highly doubt that would change anytime soon.

28. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Well of course they will buy the cheaper offerings. I mean they do as much as most Apple devices so why pay more. I mean you can pay more for the "best" in class camera of the Pixel or S7, or the best in class video recorder of the LG G5 and so on. Or you could buy a middle of the road "meh" phone like an iPhone and pay 3 times as much (even though most people get it on contract and pay...surprise surprise....$200).

51. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Don't you hate it when "a middle of the road phone" is kicking asses?

14. tedkord

Posts: 17365; Member since: Jun 17, 2009

Not praying for Apple's demise, just praying they'll stop suing people over things they stole themselves. They have gotten much better with Cook. It's refreshing to see an adult running Apple.

15. HomerS

Posts: 419; Member since: Sep 19, 2014

Then other companies would buy the displays, as now their demand cannot be fullfilled as Samsung delivers the displays to Apple.

48. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I actually not in favour of Apple buying up the OLED supplies. This would make the panel more expensive for other OEM and also greatly limit their ability to make large OLED screen phone or tablet. Its also not exactly advantageous to iOS user if Apple is going to charge much more for their iPhone. I think a large chuck of user are fine with their current iPhone display.

18. ibend

Posts: 6747; Member since: Sep 30, 2014

apple isn't the only manufacturer that buy parts from samsung.. and if apple gone, that'll mean other manufacturer will increase their production capacity and they'll buy more parts from samsung.. not to mention that samsung will also get bigger slice of market share and get more profit from that

52. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Up untill iPhone there were no "smartphones"; the market was dominated by feature phones (remember Nokia Arte with its crazy 800€ price tag?) so nobody needed displays (from Samsung); Apple created this huge market.

19. ShadowSnypa786

Posts: 586; Member since: Jan 06, 2017

Nope if there was no Apple samsung probably be Number 1 with even more sales and Huawei would be 2. Then Samsung could sell its OLED displays to others like Sony, Motorola, LG. So they still be making alot of money. No need to worry for samsung.

22. BlackhawkFlys

Posts: 923; Member since: May 07, 2014

Sony and LG make their own displays so they won't but other dozens of companies would

35. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Did we read recently that LG tried tp source displays from Samsung, but Samsung turned them down because applw took the available capacity? Even tbough yes LG does make displays, they dont have Samsungs capacity. Samsing is the beast here. Even Qualcomm uses them.

41. ph00ny

Posts: 2033; Member since: May 26, 2011

Are you talking about JDI because sony's mobile display division was bought by a finance firm to merge with few other display division to form JDI. So no, sony doesn't make their own displays

34. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Dude you are stupid. So what about all those time Apple didnt use Samsung. Ease explain what financial harm Samsung suffered? When Apple dropped Samsung dor making CPU's, Qualcomm took over and i am surw Qualcomm brings way morw business as far as CPU. The SnapDragon is used in more devices that any other ARM based CPu. Apple needs Samsung because no one had the capability to yield enough quality products for Apple. You arw stupid dude. If Samsung coukdnt fill theborder or chose not too, rhat means another year with no OLED for Apple.

42. southernzombie

Posts: 355; Member since: Jan 17, 2017

Right because samsung wasn't around and doing business for nearly 40 years before apple was founded. Samsung doesn't need Apple.

49. GoTstan

Posts: 386; Member since: Jul 25, 2015

Just like PS needs xb, Samsung needs apple, I realize that. Competition baby. And I will continue to hate apple

4. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

I see the future. And the future is not cheap.

5. notfair

Posts: 746; Member since: Jan 30, 2017

Can't wait to see how apple will name the amoled screen made by samsung.

7. Iodine

Posts: 1483; Member since: Jun 19, 2014

Apple watch has a Retina display. Sometimes called "flexible" because it's flexible. iPhone has Retina HD (with 3D touch ?), iPad got a Retina, iMac has a Retina 4K/5K display and MacBook (s) have Retina display. I dare to say that the next iPhone will have a Retina display. And it will be top noth like it's predecessors.

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