Apple is about to unveil a brand new iPhone on September 12[1]. For the first time, the company is likely going to switch from LCD displays to OLED displays, a newer technology that is causing some challenges. In particular, according to a new report[2] from KGI Securities and obtained by Apple Insider, Samsung is going to be the sole supplier. Samsung is taking advantage of that by charging a ton of money for those displays.
KGI Securities’ analyst Ming-Chi Kuo estimates that Apple is currently paying $45 to $55 for LCD displays in current iPhone models. But Samsung is asking for $120 and $130 per unit. This could be the reason why the next high-end iPhone is going to be so expensive[3].
There are a few reasons why Apple has no choice but to pay a small fortune. First, Apple needs OLED displays more than ever before. Rumor has it that the next iPhone is going to feature a taller screen that is going to nearly fill the front of the device. Think about it as an iPhone 7-shaped device, but with a screen that expands toward the top and bottom edge of the device.
It’s like having an iPhone 7 Plus display in an iPhone 7 body. But the issue is that Apple will have to deal with a small-ish battery for quite a big display. Among other things, OLED displays are more energy-efficient. That’s why Apple can compensate the bigger display with OLED technology.
While many Android manufacturers have used OLED displays for years, Apple faces some interesting scaling issues. The company is currently selling over 200 million iPhones every year.
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