Apple tries to reduce its reliance on Samsung, and it will soon reach an agreement with BOE
Since the launch of the iPhone X two years ago, the average selling price of Apple's iPhone has risen sharply. One reason is that the technology giant has already passed the X model OLED screen cost to customers.
Currently, Samsung is the only supplier to produce high quality OLED screens for smartphones. According to some reports, the Korean electronics giant charged Apple for nearly $100 per screen.
Apple is trying to source OLED screens from other vendors. Although the company sought LG's OLED screen last year, LG only produces OLED screens for TV. LG has not yet perfected the manufacture of rugged OLED panels for smartphones. Therefore, Apple still uses the more expensive Samsung OLED panel.
Apple wants to reduce its dependence on Samsung
However, the situation of OLED panels may be changing. According to data from the Nikkei Asia Review, Apple is about to reach an agreement with BOE to manufacture OLED panels for its iPhone.
According to the report, "Apple will decide whether to use BOE as a supplier of mobile display before the end of this year."
OLED panels are considered superior to LED screens because the former has better color performance. In addition to the denser battery than LED screens, OLED screens are lighter and more flexible.
New OLED suppliers can increase Apple's profitability
By adding new suppliers, Apple is trying to increase the bargaining power with Samsung, and winning new suppliers can help reduce the cost of OLED screens. This, in turn, gives Apple the flexibility to pass on cost-effectiveness to customers. Higher costs and other factors have caused Apple's profit margins to shrink in the past few quarters.
Lower iPhone price points may help the company increase its shipments in price-sensitive countries such as India. India has shown signs of improvement after the company discounted the iPhone XR in India. Apple is also producing more iPhones in India to bypass the country's high import tax, which also helps sales in the world's second-largest smartphone market.
The tech giant is keen to boost its iPhone sales because iPhone revenue has fallen over the past three quarters.
It is widely expected that Apple will launch three new iPhones in September. Two of the phones may be equipped with OLED screens, and the third phone is expected to be a follow-on to the iPhone XR with LCD.
Currently, Samsung is the only supplier to produce high quality OLED screens for smartphones. According to some reports, the Korean electronics giant charged Apple for nearly $100 per screen.
Apple is trying to source OLED screens from other vendors. Although the company sought LG's OLED screen last year, LG only produces OLED screens for TV. LG has not yet perfected the manufacture of rugged OLED panels for smartphones. Therefore, Apple still uses the more expensive Samsung OLED panel.
Apple wants to reduce its dependence on Samsung
However, the situation of OLED panels may be changing. According to data from the Nikkei Asia Review, Apple is about to reach an agreement with BOE to manufacture OLED panels for its iPhone.
According to the report, "Apple will decide whether to use BOE as a supplier of mobile display before the end of this year."
OLED panels are considered superior to LED screens because the former has better color performance. In addition to the denser battery than LED screens, OLED screens are lighter and more flexible.
New OLED suppliers can increase Apple's profitability
By adding new suppliers, Apple is trying to increase the bargaining power with Samsung, and winning new suppliers can help reduce the cost of OLED screens. This, in turn, gives Apple the flexibility to pass on cost-effectiveness to customers. Higher costs and other factors have caused Apple's profit margins to shrink in the past few quarters.
Lower iPhone price points may help the company increase its shipments in price-sensitive countries such as India. India has shown signs of improvement after the company discounted the iPhone XR in India. Apple is also producing more iPhones in India to bypass the country's high import tax, which also helps sales in the world's second-largest smartphone market.
The tech giant is keen to boost its iPhone sales because iPhone revenue has fallen over the past three quarters.
It is widely expected that Apple will launch three new iPhones in September. Two of the phones may be equipped with OLED screens, and the third phone is expected to be a follow-on to the iPhone XR with LCD.