Samsung will start the production of OLED panels for the iPhone X and iPhone X Plus from next month. This is ahead of schedule as the Korean company was initially expected to start the mass production of the displays in July.
Instead, the company will start the mass production of displays from May itself, with plans to double its production capacity in June. The report cites that due to the poor sales of the iPhone X, Samsung had shut down its OLED production line for several months. It was believed that the line would have started again in June or early Q3, but Samsung seems to have some other plans.
Samsung will be supplying Apple with OLED panels for the 5.8-inch iPhone X and a bigger 6.5-inch iPhone X Plus. There will also be a 6.1-inch iPhone with an LCD display that will the cheapest of the lot. There were reports of LG supplying Apple with OLED panels for the bigger iPhone X Plus, but given the company’s relative inexperience and limited production capacity, the chances of that happening are slim. If anything, LG might join Apple’s OLED supply chain this year provided it is able to set up its OLED production facility and produce panels that are up to Apple’s standard.
By securing a steady supply of OLED panels and yield issues with major Face ID components all but resolved, it is unlikely that there is going to be a supply bottleneck of the new iPhones when they launch in September this year. Apple had to delay the launch of the iPhone X and the handset was in short supply during the initial few weeks due to yield issues with some major Face ID components. However, a sudden improvement in yield led to the handset’s supply stabilizing ahead of the crucial Holiday season. This year though, since Apple is not going to introduce any breakthrough component to its iPhone lineup, it is unlikely that there are going to be major supply issues for the new iPhones at launch.
[Via Economic Daily News]Like this post? Share it!