The monopoly of Samsung in OLED displays explains the high cost of iPhone 8

12 September Apple will unveil a commemorative iPhone 8, the cost of which, presumably, will exceed $ 1,000. Analyst Ming-Chi Kuo explained why the price tag on the new iPhone would be so high.

According to Kuo, the reason for the inflated price iPhone 8 OLED display is the Samsung monopoly in the market. Since the creation and supply of OLED panels for iPhone deals only with Samsung, the company can dictate prices and demand from Apple as long as it sees fit. As a result, one OLED panel for the next iPhone costs Apple $ 120-130. For comparison, one LCD module for iPhone 7 and iPhone 7 Plus Apple pay 45-55 dollars.

In addition to the OLED display, the new iPhone will be used and other expensive components such as a 3D scanner for face detection. Therefore, Kuo believes that $ 1,000 per iPhone 8 is an acceptable price for a smartphone with premium.

According to the analyst, in order to reduce the cost of the iPhone in the future, Apple needs to find an additional supplier of OLED panels. If alternative contractor Samsung will not be able to set the price of components at its discretion. However, competition from the South Korean manufacturer will be able to make only LG Display and not earlier than 2019.

According to Bloomberg, at the moment LG does not have sufficient production capacities, which could provide the desired Apple variety of high-quality OLED panels. Under the current scenario create a large OLED displays in sufficient quantity LG can not until the end of 2018 ā€” beginning of 2019.

Clifton Nichols

Clifton Nichols

Hi! Iā€™m Clifton and I am a full-stack engineer with a passion for building performant and scalable applications that are beautiful and easy to use.

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