Apple dependent on Samsung for its new iPhone

Millions of people are looking forward to September 12, the day of the launch of iPhone 8 – a phone that is probably going to be a bit expensive. However the rival company Samsung is to blamed for this massive cost price of the phone.

For the first time, Apple has decided to switch from their usual LCD displays to OLED displays, and Samsung is the only provider of OLED screens. Due to this reason, the tech giant Samsung is taking complete advantage by providing Apple with those displays and charging it with a ton of money, discloses a report from KGI Securities.

KGI Securities’ analyst Ming-Chi Kuo estimated that the previous LCD displays that are in the prevailing iPhones cost $45 to $55 per unit. Whereas, the new displays would cost $120 to $130 per unit, a reason for the phone being so expensive (expected to range around $999 to $1,200), informed Tech Crunch.

Kuo wrote in an Apple Insight note, “OLED iPhone panel supply is controlled wholly by Samsung, not Apple. This fact explains why, first of all Samsung has higher bargaining power and, second, why, OLED panel module is likely priced at US$120-130 per unit (vs. 5.5-inch iPhone LCD module price of US$45-55 per unit). This is also why Apple is in urgent need of finding a second source of OLED.”

In short, Apple is totally dependent on Samsung until it finds an alternative that is cheap enough. Even so, Samsung is the sole provider for Apple’s new iPhone’s displays and is reportedly, asking 160 million panels for them.

For an alternative, Apple has started building an OLED R&D facility in Taiwan and have signed up LG Display as the official provider for 2018, reported Tech Juice.