Samsung pumping $6.8bn into OLED display production to meet Apple's demand for the 2017 iPhone

Samsung pumping $6.8bn into OLED display production to meet Apple's demand for the 2017 iPhone
According to a report from Nikkei, Samsung is planning to increase production of OLED display panels by more than 50% this year, in order to meet the growing industry demand. It has long been rumored that next year's iPhone would sport a Samsung-build OLED display, and that might just turn out to be true, with the Korean tech giant pumping some $6.82bn to ramp up the production of OLED panels.

The investment is expected to increase capacity by the “equivalent of well over 200 million for smartphone panels” per year, adding to Samsung's current yearly production capacity of more than 300 million panels. This is not surprising, considering reports that Samsung is to supply 100 million 5.5-inch OLED panels for the 2017 iPhone.

Samsung has the lion's share of the OLED production market, and with sales of the organic panels doubling last year, it is no surprise that the Korean tech giant is looking to increase its foothold even further. Similarly, other manufacturers are striving to gain on the juggernaut, with LG Display – the world's largest LCD panel maker – planning to invest over around $8.6bn to boost its production of OLED television panels, with mobile displays likely to follow suit.

OLED screens are praised for their deep blacks and overall vibrance, although slammed by critics for a more unnatural color reproduction compared to LCDs. One of the main challenges poised by the technology, is the relatively short operational life of OLED panels. A lot can be improved however, and with Apple's purported introduction of an OLED display in next year's iPhone, the mobile industry might push toward a wider adoption of the technology.

source: Nikkei via SamMobile

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27 Comments

1. sgodsell

Posts: 7383; Member since: Mar 16, 2013

It certainly isn't just for Apple. Considering a number of other OEMs have been using AMOLED displays for quite some time. I have even seen Samsung use AMOLED in their low end devices as well.

5. nctx77

Posts: 2540; Member since: Sep 03, 2013

That may be true, but that is already in the pipeline. This increase is for the iPhone. Making screens for the iPhone will literally double their capacity.

10. darkkjedii

Posts: 31105; Member since: Feb 05, 2011

He knows that, he just has to troll.

11. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Anyways, Sammy is getting loads of money for this. Enjoy the tech.

20. darkkjedii

Posts: 31105; Member since: Feb 05, 2011

I already enjoy it on my Note 5, and Apple Watch, and can't wait for it to get to the iPhone. ;)

16. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

You and NCTX77 must have went to the same stupid school "Samsung's current yearly production capacity of 300 million panels." "Samsung is to supply 100 million 5.5-inch OLED panels for the 2017 iPhone." Looks like you can count. Samsung is already making 300M panels. If Apple was causing Samsung to double its output, that would be 600M. Nowhere does it say Samsung is putting out 600M panels. The articles math should 500M. That is nowhere near double since 200M extra panels is not equal to the 300M they are already making.

23. sgodsell

Posts: 7383; Member since: Mar 16, 2013

The only trolls here are you and nctx77. Nctx77 clearly cannot do math. If Samsung can currently produce 300 million panels, than adding another 200 million is not doubling. Also with almost 1.5 billion smartphones being sold for this year alone. Do you honestly think for one minute that Samsung needs Apple to buy any of their panels? Not for one moment. Apple will be lucky to sell 200 million iPhones this year. So that leaves the vast majority of Android devices from lots of different OEMs, that are currently using OLED panels from Samsung, right now and in the future.

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Except it isn't. Read the source. If they are only making 100M panels for Apple, they already make 300M for themselves and others, where they've already double capacity; how is Apple 100M panels doubling capacity. if Apple was causing Samsung to double capacity, wouldn't that be 600M panels in a year? "Samsung's current yearly production capacity of 300 million panels." "Samsung is to supply 100 million 5.5-inch OLED panels for the 2017 iPhone." Looks like you can count.

18. Macready

Posts: 1824; Member since: Dec 08, 2014

No, Q4 2015 they produced almost 90 million panels. Supplying a suggested 100 million to Apple in 2017 will add 25% to 35% at best, seeing other manufacturers making the switch too. A far cry from your 200% claim.

2. Danini1112

Posts: 70; Member since: Jun 22, 2013

Or it's just for the next Galaxy S8 & the stand alone Gear VR. But people think it's always for Apple :D.

6. nctx77

Posts: 2540; Member since: Sep 03, 2013

Samsung already use these screens, why would they need to increase the capacity to this level? Think about it dude!

14. ibend

Posts: 6747; Member since: Sep 30, 2014

- because tons of chinese company starting to shift to amoled screen? - because amoled monitor and smartTV will be more common next year? - because they need to use amoled screen for their upcoming IoT stuff? - because they need new equipment to mass-produce new flexible amoled for their foldable smartphone? they wont invest that much solely because apple, and there is no guarantee that apple will order another display panel from samsung after next year.. samsung isnt that clueless, unlike GTadvanced, lol...

26. vincelongman

Posts: 5699; Member since: Feb 10, 2013

Also VR Both HTC/Valve and Oculus use Samsung screens (and probably Razor)

3. legiloca

Posts: 1676; Member since: Nov 11, 2014

Oh how lucky am I to be just buying an iPhone only during its S year :D

7. joeytaylor

Posts: 957; Member since: Feb 28, 2015

Very lucky for you

4. tokuzumi

Posts: 1907; Member since: Aug 27, 2009

I do like the AMOLEDs on the S6/S7. Certainly way better than the ones on the S4/S5/Nexus 6. Nice thing about AMOLEDs is the off angle viewing. LCDs tend to wash out when viewed from the side.

12. Unordinary unregistered

Who the f**k holds their phone at a left-45° angle to analyze Facebook photos.

28. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

When they are laying on a bed with someone else. Anyway, we will be hearing how fantastic Retina AMOLED is going to be in next year WWDC 2017. Don't worry you will praise it too! When you own one.

17. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

The S5 has the best display when it came out. Obviously Samsung has improved on the tech behind them. But I wouldn't way the S6/S7 is way better than the S5. They are all in the same class. They were all on top for the year they were release.

8. brasstax

Posts: 542; Member since: Apr 16, 2014

*Grabs popcorn and large Pepsi and makes himself comfy* All set... let's go!

9. Barney_stinson

Posts: 672; Member since: May 30, 2016

All major companies are linked to each other and yet fanboys just fight for best!! And best -- its s7 edge !! And for ios best- iphone 6s+ !!! And yet msft makes money from sammy too!! So enjoy with whichever phone you have!!

13. ZeeNasir

Posts: 131; Member since: Nov 25, 2012

At the cost of Screen Burn in. It's horrible

19. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Have you ever experienced it? Because I've been buying Samsung phones since the S3 and Note 2 and not one I ever sold a year later showed any signs of screen burning. You just wasting your time bring up some BS. This isn't the 90's bruh or the early 2000's. Samsung SAMOLED panels dont suffer such unless you are only using the phone in demo mode where the same image is on the screen for countless amounts of hours and days. You sound like you need to actually get your facts straight. I'm not saying it doesn't happen. Just saying its as rare as people getting struck by lightning.

22. Romantico3pe

Posts: 179; Member since: Sep 14, 2015

I also hate screen burn in, thats the reason i dont buy any device with crapoled screen happened to me on my s5 and s6, im a driver and i use my phones for navigation, google maps basically. Phone got burned in in less than 2 weeks while using this app 8 hours a day, after that i switched to lg g4 and now g5 never had this problem again, i cant understand bow you guys can live knowing this problem may happen at any time, amoled is crap period

21. FrenchGuy

Posts: 134; Member since: Dec 12, 2014

"OLED screens are praised for their deep blacks and overall vibrance, although slammed by critics for a MORE UNNATURAL COLOR reproduction compared to LCDs." Really??? Which smartphone can you find the best display in terms of color reproduction in? Samsung galaxy note 5 and S7 according to the vast majority of serious tech review websites . What technology do their displays use? AMOLED. Nothing needs to be added. You get my point. Sure, OLED back in the days when galaxy S,SII, SII released, was crap but now it's time to get other with the idea of oversaturated colors. But when the first iPhone with amoled screen will come out (which I'll buy), everybody will have forget about this color reproduction.... iMOLED marketing baby bra !!

24. Iodine

Posts: 1483; Member since: Jun 19, 2014

The display with the best color reproduction is undeniably the iPad Pro 9,7 (an LCD) and most other areas too. Amoled has nice wide gamut, but iPad Pro also covers a very wide color spectrum. Then any amoled with wide gamut will get completely screwed up colors thanks to how android manages colors.

25. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

The biggest problem is the OS itself doesn't have color management profiles, something that Apple just keeps adding to at the OS level since iOS 8. Anandtech's article on the iPad Pro 9.7" was an eye opener.

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