Samsung Display, a subsidiary of Samsung Electronics, has signed a new contract estimated at 5,000 billion won ($ 4.3 billion) with Apple to supply 60 million OLED screens additional for theiPhone 8. This new deal comes after the Korean screen maker reached an agreement last April to supply 100 million OLED panels for the next iPhone, which is expected to be released in September this year.
Recently, industry sources have predicted that the new iPhone 8 will arrive in three variants, the “Premium”Being the only one with an OLED screen. Considering that Apple sells 200 million phones a year, these 160 million OLED panels could satisfy around 80% of demand.
Samsung uses OLED on almost 70% of its smartphone models, including the S series, while Apple uses liquid crystal displays from several manufacturers (LCD) such as LG Display, Sharp and Japan Display on its iPhone. Since the two main smartphone manufacturers Samsung and Apple will offer an OLED screen on their flagship models (Galaxy S8 & iPhone 8) this year, their rivals should face a shortage of supply from suppliers, the alternatives being limited.
Samsung Display dominates more than 95% of the mobile OLED market. Its competitor LG Display should also strengthen the production of OLED panels, in order to be Apple’s second supplier for this component next year. Finally, The Korea Herald reports that Samsung aims to sell 60 million Galaxy S8s, which will launch in mid-April. Its predecessor, the S7 has sold 48 million copies, while the Galaxy S6 and S5 have sold 45 million units.