A report from The Wall Street Journal claims that Apple might have to continue depending on Samsung as its OLED screen supplier for its iPhones, but is that really a problem?
The iPhone X, like all other iPhone models, is filled with components, each of which usually come from multiple manufacturers. However, for its OLED display, Samsung is the exclusive supplier, and it appears that the arrangement will continue for the upcoming iPhone X successors.
Apple To Keep Buying OLED Screens From Samsung Because LG Failed
It is no secret that the iPhone X OLED display is made by Samsung, but it appears that Apple will keep buying OLED screens from its rival for future iPhones.
Apple has tapped LG as a possible alternate supplier for the OLED screens to reduce the company's dependence on rival Samsung. However, according to The Wall Street Journal, manufacturing problems have made LG fall behind the schedule that Apple suppliers follow for the mass production of new iPhone models.
The report also claimed that Apple requested for LG to proceed with a third round of prototypes for the OLED screens, which is an unusual step for most of the company's suppliers.
It appears that LG is having trouble meeting the standards that Apple requires from its suppliers. If LG is not able to catch up, Apple will likely have to depend on Samsung again for the OLED displays of this year's iPhone models.
According to rumors, Apple will release three iPhones in 2018: an upgraded iPhone X with a 5.8-inch OLED screen, the largest iPhone ever with a 6.5-inch OLED screen, and a cheaper iPhone X that replaces the OLED screen with a 6.1-inch LCD screen.
OLED Screen Supplied By Samsung: Not A Problem For Apple
The Wall Street Journal claims that LG's struggles to match the competence of Samsung as an OLED screen supplier will be a problem for Apple. The dependence on Samsung is apparently the reason why the iPhone X has a $999 starting price that is "causing demand to fall short of expectations and forcing Apple to cut orders for parts."
AppleInsider criticized this part of the report from The Wall Street Journal, pointing to the fact that the iPhone Average Selling Price was pushed up partly due to the demand for the iPhone X. In addition, a recent report from Counterpoint Research revealed that the iPhone X generated 35 percent of the total profit of the smartphone market in the fourth quarter of 2017.
AppleInsider also called it "ridiculous" to think that the OLED screen is the only reason why the iPhone X carries a $999 price tag.
If Apple was able to reach such a level of success with just Samsung as the OLED screen supplier for the iPhone X, then it should not be a problem for Apple to keep depending on Samsung for the OLED screens of the upcoming iPhone X successors.
