Apple may have to reconsider how they obtain their OLED panels for the iPhone. Last year, the iPhone X was the first phone from Apple to use an OLED panel; previous models used a traditional LCD display. In order to be able to manufacture the 5.8-inch OLED display of the iPhone X, Apple turned to Samsung to manufacture the displays. They didn’t have much of a choice; Samsung is the only reliable supplier of OLED panels at this small size.
Samsung has had a few years perfecting their manufacturing process when it comes to OLED displays for mobile phones. They have used these displays on their own line of phones, the Galaxy and Note series of phones. They also sell displays to competing manufacturers to be used on their own brand of phones. As a result of this, Samsung can charge a premium for their displays without much competition.
Apple, not one to keep all their eggs in one basket, has partnered with LG to supply OLED displays to at least one phone in their 2018 lineup. Unfortunately, Ars Technica notes that LG seems to be struggling to meet Apple’s demands. Plagued with manufacturing problems, it is not sure if LG will be able to deliver the OLED panels in time for the September launch of the new iPhones. If the situation with LG does not improve, Apple will be forced to use Samsung as their sole supplier of OLED panels.
LG is no stranger when it comes to manufacturing problems with OLED panels. In 2017, LG supplied displays to two phones, the LG V30 and Google’s Pixel 2 XL. Both amazing mobile phones with one major flaw, the display. The OLED panel suffered from image retention issues, the color white not being accurately represented, and a host of other issues. The Verge reports how it was a toss-up on the quality of the display the owner would receive. Some displays would be good, and others would be of low quality.
Having a single supplier for OLED panels does Apple no favors. In 2017, Samsung was able to charge $97 for the display used in the iPhone X. Without any competition in this space, Samsung will not be forced to lower prices. In the end, Samsung knows Apple will have to pay if they want OLED displays because they have no one else to turn to.
Dil Bole Oberoi
