What’s The Upside For Samsung If It Wins Apple’s iPhone Display Business?

April 19th, 2016 by Trefis Team
SSNLF: Samsung Electronics logo
SSNLF
Samsung Electronics

According to a source cited by the Chinese edition of the Wall Street Journal, Samsung will be supplying about 100 million 5.5″OLED displays for Apple’s iPhone (Potentially the 7S Plus) in 2017. [1] Apple currently uses LCD displays on its 6 series devices, sourced from LG Display and Japan Display. The rationale for a shift towards OLEDs could be two fold. Firstly, the cost of OLED panels has declined significantly, to a point where they are slightly cheaper to manufacture compared to LCD panels. [2] Secondly, there will be some performance benefits such as lower power consumption and better contrast levels. Below, we estimate the potential upside to Samsung’s display and overall revenues if it wins Apple’s business in 2017.

AAPL_SSNLF_OLED

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Samsung
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Notes:
  1. Apple orders 100 million Samsung OLED panels for the 2017 iPhone, GSM Arena, April 2016 [↩]
  2. Production cost of AMOLED screens is now lower than LCD’s, GSM Arena, March 2016 [↩]