The report states that Samsung Display, the largest
OLED panel maker in the world currently, has an exclusive agreement with Apple to supply it with OLED panels in 2017.
A report from Bloomberg says that all the four major
OLED panel makers — Samsung, LG Display, Sharp, and Japan Display — will not have enough production capacity to fulfil Apple's OLED demand before 2018.
The Canon - owned subsidiary can only build a few dozen machines each year and it already has a «growing backlog» of units it needs to create for
OLED panel makers.
It took a few years for
OLED panel makers to iron out these issues, and Samsung was at the forefront of solving them.
Not exact matches
In fact, LG is even supplying its
OLED panels to other TV
makers, such as Panasonic, Sony and Philips.
Samsung's contract for
OLED panels with Apple is expected to end soon as the iPhone X
maker is eying talk...
Almost every other display
maker is currently struggling with their
OLED production facility or yield issues and are incapable of supplying Apple with
OLED panels in decent numbers.
Apple's domination of the
OLED supply chain is one of the reasons why three Chinese smartphone
makers are seeking out alternative display technology in future handsets, according to a report today by DigiTimes.Huawei, Oppo, and Xiaomi are planning to adopt mini LED - backlit
panels in smartphones launched later in 2018.
The Cupertino company is expected to make use of
OLED display
panels on its redesigned iPhones, and it has been in talks with various display
makers about it.
TrendForce says that expansions from Chinese and Korean
panel makers will see
OLED penetration in the smartphone market increasing to 50 percent by 2020.
Sources in the
OLED production equipment industry are skeptical about
panel makers producing enough to meet Apple's demand, if it decides to use
OLED screens in all new iPhones next year, the report said.
Meanwhile the
OLED business, of which Samsung itself is a huge customer, was reported to have recently won a huge deal with Apple, to supply the iPhone -
maker with around 100 million display
panels in 2017.
As Samsung makes its own
OLED panels, it has an advantage over other Android phone
makers in being able to come up with customized solutions of its own.
«Instead of installing flexible
OLED facilities for iPhone X at the A5 plant in Asan, South Chungcheong Province, the display
maker will likely set up a line for large - size
OLED panels (for TVs) there,» an analyst said.
While Apple is looking at LG Display, JDI and other display
makers to supply it with
OLED panels, these companies are still in the process of setting up their
OLED production lines and their
OLED panel quality is nowhere near that of Samsung.
While Nikkei makes no mention of potential partners to build the
panels, Apple was previously said to have struck a deal with Samsung that will see the South Korean phone -
maker manufacture 160 million
OLED panels for the new iPhone.
Samsung is actually the only
panel maker in the world that's operating the A3 line, a sixth - generation flexible
OLED line at its Tangjeong plant in Chungcheong - nam - do.
Samsung will likely supply most of Apple's
OLED panels for the iPhone 8 initially, which will leave many phone
makers scrambling for LCD alternatives for next year.
Samsung is actually the lone
maker of the 5.8 - inch
OLED panels used by Apple on the 2017 iPhone X. However, LG Display does manufacture LCD
panels for the iPhone 8 and iPhone 8 Plus.
This production line currently has the capacity to make an additional 60,000 units of 6th Gen
OLED panels per month, but lack of orders from Apple and Chinese handset
makers could delay production at this line for up to 6 months.
The Seoul - based original equipment manufacturer became the world's largest
maker of
OLED panels in 2004, according to most industry trackers, and has only strengthened its lead in the following years.
This planned move by Apple with respect to the iPhone 8 match perfectly with the reports that the iPhone
maker has plans to ditch its Retina Display LCD
panels in favor of
OLED panels supplied by Samsung.
But apparently prototypes of the folding phone have already been shown off behind closed doors at CES 2018, which took place in January, while Samsung's Q4 2017 financial results included claims that foldable
OLED panels and phones could be a big money -
maker for Samsung in 2018 and beyond - which is yet more evidence that the Galaxy X is coming soon.
Other display
makers are frantically looking for ways to mass produce
OLED panels precisely for this reason.
Samsung Display, to be more precise, is the only
OLED screen
maker that can meet Apple's requirements for next year, while its competitors are currently scrambling to increase
OLED panel production to levels that might come closer to filling Apple's
panel orders.
While the company managed to grow into a major
maker of
OLED panels for TVs, it has yet to commit more resources to doing the same in the mobile segment which is currently entirely dominated by Samsung Display which accounts for over 97 percent of global
OLED panel production for smartphones.