What Apple Wants: Samsung OLED Alternatives?

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Well connected KGI Securities analyst Ming-Chi Kuo says the next iPhone brings Apple a massive dilemma-- being sole OLED supplier lends Samsung power in the negotiation of display prices, leading to production costs.

iPhone OLED conceptAs AppleInsider reports, Kuo says OLED prices cost Apple $120-130 per unit, much higher than the $45-55 per unit Apple is believed to be paying for iPhone 7 LCD displays. Thus, the analyst states, Apple is "in urgent need" for a second OLED source. However such a task is no way easy, since such a supplier needs to ramp up OLED output while meeting Apple quality control standards.

Currently Samsung is the only company able to produce phone-size OLEDs at kind of scale and consistency required by Apple. As a result, it can dictate the prices, and Apple has to cough up if it wants the best. Currently the S. Korean giant holds the majority of OLED production, as well as most related technology patents.

That said, Apple is said to be pumping investment in LG Display to secure a second OLED source, as the company has the technical knowhow but not the manufacturing scale.

Go Samsung is Sole Supplier of Costly iPhone OLED, Putting Apple in "Urgent Need" of Alternatives (AppleInsider)