Apple ordering 70 million Samsung OLED panels for 'iPhone 8' - report

Posted:
in iPhone edited April 2017
Apple has ordered 70 million OLED panels from Samsung for the upcoming "iPhone 8," and could ask for even more depending on demand, a report said on Monday.




The 70 million figure is for this year, according to several Nikkei sources. The claim was backed up by IHS Markit analyst David Hsieh, who added that Samsung could deliver as many as 95 million panels if Apple needs them.

Regardless of order size, some panels could be for iPhones going into manufacturing this year but only selling in 2018, once again depending on demand.

In February a South Korean report claimed that Apple had entered into a $4.3 billion contract with Samsung for 60 million OLED panels. It could be that Apple has decided to increase numbers as part of a more optimistic forecast.

One Nikkei source reiterated claims that the "iPhone 8" will feature wireless charging and 3D facial recognition, in addition to replacing a physical home button with a virtual one. The device should also be waterproof like the iPhone 7, possibly upgrading to an IP68 rating.

Apple is also expected to offer two LCD-based models sized at 4.7 and 5.5 inches, sharing wireless charging and waterproofing in common but retaining a physical home button.

Nikkei suggested that the OLED phone will feature a 5.2-inch display, but that differs with most reports pointing to a 5.8-inch panel. The disparity could be linked to claims elsewhere that virtual buttons will take up about 0.7 inches.
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Comments

  • Reply 1 of 24
    RacerhomieXRacerhomieX Posts: 95unconfirmed, member
    I cannot wait!!!
    watto_cobra
  • Reply 2 of 24
    mike1mike1 Posts: 3,409member
    "In February a South Korean report claimed that Apple had entered into a $4.3 billion contract with Samsung for 60 million OLED panels. It could be that Apple has decided to increase numbers as part of a more optimistic forecast."

    If that's true, Apple's cost per panel is roughly $72. How does that compare to an LCD panel?
  • Reply 3 of 24
    zroger73zroger73 Posts: 787member
    mike1 said:
    "In February a South Korean report claimed that Apple had entered into a $4.3 billion contract with Samsung for 60 million OLED panels. It could be that Apple has decided to increase numbers as part of a more optimistic forecast."

    If that's true, Apple's cost per panel is roughly $72. How does that compare to an LCD panel?
    A quick search on Amazon/eBay revealed retail prices of about $100 for a replacement screen for an iPhone 7 Plus. Since cost is less than that, the difference between LCD/OLED may be smaller than some might expect.
  • Reply 4 of 24
    MathieuWacowichMathieuWacowich Posts: 10unconfirmed, member
    iPhone 7s and 7s Plus with OLED Screens. There will be no iPhone 8 or x, or whatever this year.
    smack416watto_cobra
  • Reply 5 of 24
    mrboba1mrboba1 Posts: 276member
    So how does this number compare to prior to the iPhone 6 launch? This number alone doesn't mean much without a frame of reference, except that it is a large number (to us).
  • Reply 6 of 24
    fotoformatfotoformat Posts: 302member
    Quote... "It could be that Apple has decided to increase numbers as part of a more optimistic forecast."

    And also to spook Sammy!
    watto_cobra
  • Reply 7 of 24
    freeperfreeper Posts: 77member
    "who added that Samsung could deliver as many as 95 million panels if Apple needs them"

    What they left out ... Samsung is the only company capable of delivering anywhere near that many panels, and will be for the foreseeable future. Just as their foundries are the only ones capable of making 10 nm SOCs in high volumes. 
    fallenjt
  • Reply 8 of 24
    avon b7avon b7 Posts: 7,971member
    sog35 said:
    iPhone 7s and 7s Plus with OLED Screens. There will be no iPhone 8 or x, or whatever this year.
    I can guarantee you are wrong

    No way Apple uses the same body style 4 years in a row as its flagship
    I agree with you on that point. The current design is somewhat stale so a reworking is in order. I have a sneaking suspicion that we might see them drop the 'i' in their products too.
  • Reply 9 of 24
    sog35 said:
    iPhone 7s and 7s Plus with OLED Screens. There will be no iPhone 8 or x, or whatever this year.
    I can guarantee you are wrong

    No way Apple uses the same body style 4 years in a row as its flagship
    I'm gonna come down on Mathieu's side for this. Not that they won't have a new design, just that they have a history that is in line with only one model (2 sizes).
    watto_cobra
  • Reply 10 of 24
    MikeymikeMikeymike Posts: 102member
    I just hope they can come out with something like a 4.7 screen, in a 4.8ish body phone. The money will simply fly out of my pocket.
    watto_cobrastarwars
  • Reply 11 of 24
    eightzeroeightzero Posts: 3,134member
    avon b7 said:
    sog35 said:
    iPhone 7s and 7s Plus with OLED Screens. There will be no iPhone 8 or x, or whatever this year.
    I can guarantee you are wrong

    No way Apple uses the same body style 4 years in a row as its flagship
    I agree with you on that point. The current design is somewhat stale so a reworking is in order. I have a sneaking suspicion that we might see them drop the 'i' in their products too.
    After they changed the name of the operating system to "iOS"? Nah.
    Metriacanthosauruswatto_cobra
  • Reply 12 of 24
    sog35 said:
    iPhone 7s and 7s Plus with OLED Screens. There will be no iPhone 8 or x, or whatever this year.
    I can guarantee you are wrong

    No way Apple uses the same body style 4 years in a row as its flagship
    I'm gonna come down on Mathieu's side for this. Not that they won't have a new design, just that they have a history that is in line with only one model (2 sizes).
    Nah, Apple has been litmus testing the premium phone model for the last few cycles, most notably last year with the Jet Black iPhone 7 Plus. They are definitely gaming up for an expensive phone that has a limited number of skus. They will also have a new normal phone.

    Hence why all signs point to both the 7s and the 8 (or whatever its called. For now it is the "8" until it is not).
  • Reply 13 of 24
     95 million OLED iPhones during FY2018.  That's quite possible, but not with a $4.3 Billion mike1 said:0
    "In February a South Korean report claimed that Apple had entered into a $4.3 billion contract with Samsung for 60 million OLED panels. It could be that Apple has decided to increase numbers as part of a more optimistic forecast."

    If that's true, Apple's cost per panel is roughly $72. How does that compare to an LCD panel?
    Prior tear downs put the LCD screen at about $9.xx each.  Since then analysts have stated that OLEDs will cost about $10.xx more than LCDs.

    In my opinion these quantity "reports" were compiled by someone who didn't think to do the math before creating their junk.  That this latest "report" is based on "research" done by Nikkei reinforces my belief its junk being reported/spread by the blogosphere as fact.  It is not.

    Apple, like all quantity buyers, purchase for annualized production runs with scheduled delivery.  These agreements include order increase/decrease parameters at the same price points with price increases when the base order is increased/decreased by more than the agreed upon parameters.  Increasing from 70 million to 95 million (35%) without an increase in unit cost is a fairy tale.

    If the quantity is correct, then the report is implying (at most) 95 million OLED iPhones during FY2018.  That's quite possible, but not with a purchase contract of $4.3 Billion.
    anantksundaramstarwars
  • Reply 14 of 24

    A quick search on Amazon/eBay revealed retail prices of about $100 for a replacement screen for an iPhone 7 Plus. Since cost is less than that, the difference between LCD/OLED may be smaller than some might expect.
    Exactly.  Repair charges are exponentially higher than production costs because they are labor intensive.

    There is no way OLED unit costs are $70/unit, as this bogus "report" implies.
  • Reply 15 of 24

    sog35 said:
    sog35 said:
    iPhone 7s and 7s Plus with OLED Screens. There will be no iPhone 8 or x, or whatever this year.
    I can guarantee you are wrong

    No way Apple uses the same body style 4 years in a row as its flagship
    I'm gonna come down on Mathieu's side for this. Not that they won't have a new design, just that they have a history that is in line with only one model (2 sizes).
    Huh?

    Last year we had 3 new models:

    7, 7 Plus, and SE
    Or 5, 5S Plus and 5C
  • Reply 16 of 24
    SoliSoli Posts: 10,038member
    zroger73 said:
    mike1 said:
    "In February a South Korean report claimed that Apple had entered into a $4.3 billion contract with Samsung for 60 million OLED panels. It could be that Apple has decided to increase numbers as part of a more optimistic forecast."

    If that's true, Apple's cost per panel is roughly $72. How does that compare to an LCD panel?
    A quick search on Amazon/eBay revealed retail prices of about $100 for a replacement screen for an iPhone 7 Plus. Since cost is less than that, the difference between LCD/OLED may be smaller than some might expect.
    But thats the backlight, display, touchscreen, Force Touch layer, top glass cut to fit the shape of the phone, the chips, connectors, and other materials used, as well as assembly of all those components into a single component, plus market that is probably 100% at minimum and 400% near the top. Unless this is something very advanced, like quadrupling the pixel count, hence the rumours of starting at $1000+, and/or it includes all layers, minus what the backlight as that's no longer needed, then something about that seems off. Perhaps that what's they're investing up front for fab tech or for a longer time frame, but the 60 million is jus the first quarter of displays.
  • Reply 17 of 24
    hentaiboyhentaiboy Posts: 1,252member
    It always amuses me that the choruses of "Shamesung" and "Scamsung" disappear with reports like these when fanboys realise that without Samsung Apple would only be able to produce a fraction of the iPhones it does. 
    avon b7
  • Reply 18 of 24
    SoliSoli Posts: 10,038member
    hentaiboy said:
    It always amuses me that the choruses of "Shamesung" and "Scamsung" disappear with reports like these when fanboys realise that without Samsung Apple would only be able to produce a fraction of the iPhones it does. 
    1) Actually, it's because of longstanding yield issues with OLED that it's only now possible for a company like Apple to use OLED display on an iPhone.

    2) While I never use teems like Scamsung, Windoze, or Crapple, it is possible to dislike aspects of a company and still recognize their importance in the tech world.
    watto_cobrastarwars
  • Reply 19 of 24
    bluefire1bluefire1 Posts: 1,309member
    It's the tenth anniversary of the iPhone, and Apple will do whatever it wants, including releasing three different models. 
    Maybe Tim will even announce the new models early.
    Steve Jobs announced the first iPhone in January, 2007 and it was released on June 29th. 
    Maybe Cook will announce the new iPhones in June for a September release.
    Probably wishful thinking but my wallet is already open and waiting.
    watto_cobra
  • Reply 20 of 24
    k2kwk2kw Posts: 2,077member
    Between either the Galaxy S8 and the new iPhones Samsung will do great this year especially compared to lastyear .
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