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Samsung's control over OLED might be the reason behind iPhone 8's price tag

By Cookie Monster - on 8 Sep 2017, 12:00am

Samsung's control over OLED might be the reason behind iPhone 8's price tag

Image source: Benjamin Geskin

KGI Securities analyst Ming-Chi Kuo claims that Apple should not be blamed for the exorbitant pricing of the upcoming premium iPhone model. In his latest report, Kuo believes Samsung's monopoly over the OLED supply contributed to the high cost of the screen.

Compared to LCD displays which cost an average of $45 to $55 per unit, OLED panels produced by Samsung are estimated to cost between $120 to $130 per unit! Since Samsung is the biggest OLED manufacturer and exclusive supplier to Apple, the higher costs incurred are passed down to the consumers.  Other advanced components such as the facial recognition sensors could have contributed to the overall costs, but Kuo claims that the OLED panel is the main culprit. 

To reduce its reliance on Samsung in the long run, Apple is reportedly developing its OLED technology. It is said to have purchased CVD machines and setup a R&D facility in Taiwan to invest in OLED technology. In addition, the iPhone maker is in discussions with Chinese suppliers and other display makers to source for more supplies. 

Source: AppleInsider via Mashable 

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