This year, Samsung Display has reportedly supplied around 50 million OLED panels for Apple’s iPhone X, but Apple is now looking to quadruple its order in 2018 as Samsung apparently hit a satisfactory enough 90% yield rate with iPhone X displays.
The Korea Herald reported Wednesday that Samsung Display will supply Apple with between 180 million to 200 million flexible OLED panels for 2018 iPhone models, translating into an IHS Market-estimated $19.8 billion to $22 billion revenue at the supply price of $110, which includes the price of the cover glass and touch sensor.
Yield rates at Samsung’s A3 production lines have been improving, first hovering around 60% and then increasing to over 80% in the second half of 2017.
“It looks like the yield rates have reached almost 90%, and the fact that Samsung reached such levels even after the world’s highest quality flexible OLED standards were applied, is quite significant,” said one industry watcher.
The report noted that the South Korean company had initially considered supplying to Apple by investing in its new “A5” production lines, but decided to stick with its existing lines.
Samsung Display is the sole supplier of OLED panels for iPhone X, but Apple has been working with LG Display, Foxconn-owned Sharp and other suppliers who are currently in the process of building expensive factories that will help churn out OLEDs for Apple devices.