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Samsung could be the exclusive OLED supplier to Apple for two years

By Cookie Monster - on 20 Dec 2016, 3:00am

Samsung could be the exclusive OLED supplier to Apple for two years

Apple's rumored switch to OLED displays for its future iPhones will boost Samsung's profits in the near term.

Quoting information from display industry sources, Business Korea claims that Samsung Display is highly likely to be the exclusive supplier of OLED display panels to Apple for at least two years. A combination of current market situation and its unrivaled expertise in this field give Samsung at a strategic advantage over the other display panel makers. 

Samsung Display reportedly has the lion share of the OLED panel market at 95% thanks to years of experience and technical know-how on supplying smartphone displays. Moreover, the company is said to be investing more than US$12.64 billion in the next two years to boost production. With Apple estimated to sell more than 50 million iPhones with OLED panels next year, Samsung Display may see its operating profits rise significantly to as much as US$3.37 billion.  

While Samsung Display will enjoy the exclusivity for the next two years, other display panel makers are gearing up to mass produce OLED displays for Apple as the iPhone maker is known to diversify its supply chain to minimize over reliance on one supplier.  While Samsung is said to have finalized a deal with Apple, LG is also discussing with Apple to be its secondary OLED supplier

KGI Securities analyst Ming-Chi Kuo claimed last month that Apple could launch up to three iPhone models in 2017 with only one sporting the OLED display. The Korea Herald said that Apple would use a plastic OLED panel for the iPhone model while the other two models will continue to use LCD panels. 

Source: Business Korea via SamMobile

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