Samsung to spend $8.9 billion on expanding OLED production this year

Samsung to spend $8.9 billion on expanding OLED production this year
Samsung has the best of both worlds. With Android, the company has its new flagship duo in the Samsung Galaxy S8 and Samsung Galaxy S8+. And with iOS, the manufacturer is a major supplier of components for the Apple iPhone. A new report published today says that Samsung plans on spending $8.9 billion this year to expand production of OLED panels. One reason to spend that kind of money on this project is Apple's expected transition to OLED for the iPhone.

The tenth anniversary model, dubbed the Apple iPhone 8, is expected to be the first iPhone to employ an OLED screen instead of the customary LCD display. The handset is expected to be unveiled later this year, perhaps by September. The Apple iPhone 7s and Apple iPhone 7s Plus are both expected to stick with LCD panels. By 2018, all iPhone models are reportedly going to be carrying OLED screens. And that is why Sammy is making its investment right now.

With 95% of the market, Samsung's OLED panels are in demand. In fact, the latest stats show that 70% of Samsung's phones employ OLED over LCD. And in addition to Apple, there is talk that Chinese smartphone manufacturers are making the switch for their high-end handsets. To cover this increasing demand, and to keep its share of the market high, Samsung needs to expand its production of these screens.

Apple and Samsung have supposedly signed two contracts regarding the sale of OLED displays to the iPhone manufacturer. The two contracts are said to cover 160 million units. For 60 million OLED panels, Apple paid Samsung $4.3 billion, which explains why this is a worthwhile expense for the South Korean tech giant.

source: TheKoreaHerald via BGR

FEATURED VIDEO

11 Comments

1. XperiaFanZone

Posts: 2278; Member since: Sep 21, 2012

2. gnppw

Posts: 95; Member since: Jan 28, 2014

But that one doesnt mention anything about apple in it.

3. VasiliS7

Posts: 202; Member since: Jan 10, 2017

Yes only 35 times and about 10 the Samsung haha

10. ibend

Posts: 6747; Member since: Sep 30, 2014

that one didnt have enough apple in it.. Alan just fix that... this article mention Galaxy S 2 times, and iPhone 8 times... lol

4. markobarko

Posts: 176; Member since: Oct 09, 2016

Sammy is clever, and with the cash it has it is a locomotive in inovation train.

5. Lumia_Luigi

Posts: 173; Member since: Mar 22, 2017

Fanboys argue over nothing while Apple & Samsung make sh!t tons of money together.

8. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung makes more money than Apple. They also spend more money than Apple.

9. kiko007

Posts: 7500; Member since: Feb 17, 2016

"Samsung makes more money than Apple" No, they don't:http://fortune.com/2016/11/04/apple-smartphone-profits/ "They also spend more money than Apple." That is true actually.

11. MrHate

Posts: 318; Member since: Feb 09, 2015

You know it's kinda funny. That guy was making a neutral statement that both Apple and Samsung make a lot of money and that fanboys argue over nothing and then you come out of nowhere saying Samsung makes more money than Apple.

6. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

$72 per phone? There is no way Apple is spending that much. Their LCD panel costs less than that. https://www.google.com/amp/www.telegraph.co.uk/technology/2016/09/23/apples-iphone-7-costs-just-220-to-make/amp/ This article says Apples LCD cost about $43. So if Apple is going to pay nearly double, you know the iPhone 8 is gonna be ridiculously priced. What happened to OLED being cheaper?

7. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

It's so tiring that PA needs to spend everything Samsung does having to do with Apple. Lots of OEMs are going OLED and the two biggest producers are Samsung and LG. Samsung makes the best an most OEMs are probably gonna use them. It's no doubt Apple is among those making this move. But acting like Samsung is doing this just for Apple is lame. Samsung supplies stuff to every OEM in the world that makes phones just about. Outside of itself, Apple is most likely Samsung largest customer, oh and maybe Qualcomm. But largest is not equal to only.

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.