The iPhone 7 has stemmed the handset range's steady sales decline for three consecutive quarters this year, and Apple intends to leverage that into a full-blown momentum with the next iterations of the device. Unfortunately, that goal could be derailed by a Japanese company called Canon Tokki Corp.
One of the next iPhone's main selling points would be an OLED display. Apple could source that screen technology from various suppliers. Ideally, that should address any potential problem concerning shortage in the future and profitability would be assured. Unfortunately, that is not the case.
Apple And Canon Tokki
There is a host of OLED screen makers in the world today, but they largely rely on Canon Tokki for the machines needed to manufacture the component. The company, which is based in a Japanese countryside and manned by 343 employees, is currently responsible for the bulk of OLED screens in electronic devices today.
According to Bloomberg, Canon Tokki has a near monopoly on these OLED-churning machines, and it is now dealing with an increasing backlog despite increasing production this year. Apple, therefore, joins the queue with rival companies such as Samsung, LG, and Sharp.
What Is OLED Technology?
This business about OLED and its popularity among handset makers should already be inciting your curiosity at this point. If you are not aware, this technology is significantly better than competing display technologies for the sheer fact that it can light itself up.
LCDs, for instance, require a separate backlighting to illuminate itself. What this means is that an OLED display is thinner and requires less energy. That is quite remarkable especially since it is capable of producing vivid, crisp, and bright screens. You may be sure that it will also reduce the cost of producing the next iPhone.
OLED is also quite flexible because it can be implemented in plastic, a material that can be bent or shaped into different forms.
"OLEDs aren't just for flat areas, but can be used on edges, so smartphone makers will challenge themselves by building displays with new shapes," Teruhisa Tsugami, Canon Tokki's CEO, told Bloomberg. "These qualities in OLED will give it an advantage."
It is worth noting that while Apple is only about to use OLED, Samsung device owners have been enjoying the AMOLED technology for years. The company is reportedly improving it twice a year, and this is demonstrated in the Y-OCTA display technology that briefly got showcased in the Galaxy Note 7.
Production Window
Unfortunately for Apple, Canon Tokki's latest promise is that a machine will get built in the span of two years, and based on Bloomberg's source, its current annual production is less than 10. Perhaps no amount of pressure will be able to force the company to change its production process since the machine itself is said to have been perfected for decades.
