14 DAY TRIAL // Samsung is the sole supplier of displays for the iPhone X and the company is planning to speed up production of such panels next year to eventually reach a maximum of 200 million units shipped to Apple.
This means Samsung Display could make around $22 billion in revenue in 2018 following its partnership with Apple, according to estimates published by Korean media The Investor and using a supply price of $110 per display as starting point.
Samsung supplied approximately 50 million iPhone X displays this year, as its A3 production line has reportedly reached 60 percent yield rate when manufacturing started, before eventually increasing to 80 percent in the second half of this year.
“It looks like the yield rates have reached almost 90 percent, and the fact that Samsung reached such levels even after the world’s highest quality flexible OLED standards were applied, is quite significant,” the cited source mentioned one person familiar with the matter.
Apple planning to reduce reliance on Samsung
Samsung originally planned to meet the production level requested by Apple by investing in a different production line called A5, but by boosting yield rate of the A3, the company no longer considers investing in new lines for OLED panel manufacturing a priority.
And while Samsung is looking into ways to boost production of iPhone displays, Apple itself is believed to be looking into reducing dependence on the South Korean firm. Apple has reportedly invested in a new production facility operated by LG Display and which would be specifically dedicated to the manufacturing of iPhone panels in an attempt to cut orders to Samsung.
The 2018 iPhone lineup is expected to include a second OLED model that would serve as a Plus-sized version of the iPhone X. A more affordable version with an LCD screen, but also featuring the Face ID facial recognition system, is also believed to be in the works.