Apple spends a fortune on iPhone 8, global OLED screen supply may be in short supply

According to The Korea Herald website, Samsung Display, a display panel manufacturer under Samsung Electronics, has signed an agreement with Apple Inc. (hereinafter referred to as "Apple") to supply 160 million OLED panels for iPhone 8.

The report said that Apple and Samsung Display first signed an agreement last year. According to the agreement at that time, Samsung Display would supply 100 million OLED panels for iPhone 8. But recently, Samsung Display won Apple's order again to supply an additional 60 million OLED panels for iPhone 8, worth about US$4.3 billion.

The two deals bring Samsung Display's total supply of OLED panels for the iPhone 8 to 160 million units. Since Apple sells about 200 million iPhones a year, this means Samsung Display's panel supply accounts for about 80% of the total.

According to previous media reports, Apple will release three iPhones this year, of which only one (the 10th Anniversary Edition) will use an OLED screen. However, Apple's increased purchase of OLED panels may mean that the use of OLED screens will be expanded.

Currently, about 70% of Samsung's smartphone models use OLED screens, including the Galaxy S flagship series. In contrast, Apple's iPhone still uses LCD panels, mainly from LG Display, Sharp and Japan Display.

Analysts say rivals are expected to face a supply shortage of OLED screens as both Samsung and Apple's flagship smartphones will adopt them this year.

Currently, Samsung Display controls more than 95% of OLED panels for mobile devices. Of course, rival LG Display is working hard to increase production in the hope of becoming Apple's OLED supplier from next year.

According to current information, the iPhone 8 will no longer use an aluminum metal back cover, but will instead use a design with two sides of tempered glass and a metal frame in the middle, which is similar to the design of the iPhone 4 and iPhone 5.

Specifically, the iPhone 8 may use a 5.8-inch OLED curved screen, the Home button on the front will be cancelled, and replaced by a new generation Touch ID scanner embedded in the screen. Other functions of the Home button are expected to be replaced by 3D Touch gestures.

In addition, the iPhone 8 may also be equipped with high-quality Gorilla Glass and liquid metal frame, with a thickness of only 6.9 mm, and support wireless charging and 3D photography.

Last month, there were reports that Samsung will release its next-generation flagship smartphone Galaxy S8 in mid-April this year, and has set a sales target of 60 million units this year, which is much higher than the sales of previous generations of flagship products in the same period.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.