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Samsung Display’s near monopoly on Apple’s display supply chain may take a hit this year. According to the Korean media, LG Display will supply more than half of LTPO OLED panels for the iPhone 15 Pro and iPhone 15 Pro Max. Since the two premium models account for over 60% of all iPhone sales, this will put a massive dent in Samsung’s earnings.
Samsung will suffer from LG’s increased LTPO OLED display manufacturing capacity
Apple uses two different types of OLED displays on its iPhones. The base and Plus models feature LTPS (Low-temperature Polycrystalline Silicon) type screens, while the Pro and Pro Max models get LTPO (Low-temperature Polycrystalline Oxide) solutions. The latter is technically more difficult to manufacture than the former. The company obtains the majority of the displays from Samsung, while a small portion is sourced from other manufacturers.
Last year, Apple went to LG for manufacturing a portion of the LTPO displays for the iPhone 14 Pro Max. Unfortunately, the Korean firm suffered yield issues at the last minute and was only able to deliver ten million units. This caused shipping delays for the phone. Meanwhile, Apple turned towards Samsung for the remaining LTPO panel demand for its new flagships. Samsung had to deploy extra production equipment to meet this urgent need. As such, it overcharged Apple and sold the displays at a higher price.
Apple had no choice but to buy the overpriced OLED panels from Samsung. But, this year, LG has already expanded its LTPO production capacity and it appeared to meet Apple’s demand. And, the iPhone maker has trusted it again and has reportedly awarded the company with a major LTPO order for the iPhone 15 Pro and iPhone 15 Pro Max. Korean publication The Elec says LG will manufacture more than half of the displays for these two models. Samsung will supply the remaining LTPO demand from Apple.
Samsung will supply the LTPS screens for the base iPhone 15 and 15+
Along with LTPO panels for the two Pro models, Samsung will also supply the LTPS screens for the base iPhone 15 and iPhone 15+. So, its overall share in Apple’s display supply chain for the new iPhones will still be higher than LG’s. But, Samsung’s compatriot is making a big dent in its earnings from display sales to Apple this year. The iPhone 14 Pro and iPhone 14 Pro Max have accounted for more than 60% of all 2022 iPhone sales so far. It should be no different for the next-gen models, which means a bigger share for LG.
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