Samsung’s Monopoly over OLED Panels One of the Reasons Behind iPhone 8’s Rumored $1,000 Price

iPhone 8 Copper render

Due to the sheer number of new features the iPhone 8 is going to come with, it is rumored to be priced at around the $1,000 mark. As per KGI Securities analyst Ming-Chi Kuo, the reason behind the high price of the iPhone 8 can also be put on Samsung.

Apple will be making use of OLED panels on the iPhone 8. The company has sourced these panels from Samsung — the only company out there right now that can manufacture high-quality OLED panels with a decent yield rate to fulfill Apple needs.

So taking advantage of its monopoly, Samsung is charging Apple around $120 to $130 per OLED panel. This is substantially higher than the $45 to $55 for the LCD panels that Apple used to pay for the iPhone 7 and iPhone 7 Plus. It is due to this monopoly from Samsung that Apple is looking for alternate OLED panel suppliers, and it is even ready to work closely with LG and invest billions of dollars into its business to help setup an OLED factory.

Apple is reportedly setting up its own OLED R&D line in Taiwan. It has also secured an OLED building machine for the process. The company is possibly looking to manufacture its own OLED panels if the need arises or help work with its partners in improving the quality of their OLED panels. Apple is looking to switch to OLED panels for its entire iPhone lineup by 2019 so it needs to find additional OLED suppliers by then.

Additionally, the inclusion of many new laser sensors, integrating 3D Touch with the OLED panel, IR sensors for facial recognition, and wireless charging components are also very costly which have led to the iPhone 8’s Bills of Materials (BOM) rising very significantly. Apple is not known to reduce its profit margin or adhere to a specific price range. So, it can very well charge a premium for the iPhone 8 and get away with it.

The question that remains though: are you willing to spend $1,000+ on the iPhone 8?

[Via MacRumors]