Samsung Begins Running OLED Production Lines for iPhone 8 at Full Capacity

As we enter the season of iPhone production ramp-up stories, news out of Apple's supply chain today reports that Samsung Display is gearing up to operate seven of its next-generation OLED lines at full capacity in August, all of which are dedicated to Apple and the iPhone 8.

According to ETNews, the OLED ramp-up follows a series of inspections that Samsung made on each of the seven lines over the past few weeks in preparation for Apple's much-anticipated OLED-only iPhone 8. Samsung Display is the only supplier of OLED screens for the 2017 iPhone, and the manufacturer is said to see an increase from 15,000 panels per month to 105,000 panels per month following the full scale production increase.

iphone 8 embrace the notch


Samsung Display crafts multiple iPhone screens out of a single of its OLED panels, so if it keeps its production lines at maximum capacity with 100 percent yield, the supplier can produce 130 million 5.8-inch OLED iPhone screens in one year. Of course, the reality is that OLED is difficult to manufacture, and industry watchers believe that the yield rate for the Samsung Display OLED iPhone 8 line will be "at least" 60 percent. Multiple reports this year have pointed towards production delays in the supply chain, potentially leading to a limited capacity iPhone 8 launch.

While Samsung Display will be the sole OLED supplier for the 2017 iPhone, numerous sources have said that a new supplier -- LG Display -- will enter Apple's OLED supply chain in 2018. Apple is said to have invested $2.6 billion into LG Display to help the supplier get set up as a major OLED manufacturer for future iPhones, with Apple pressing LG to be ready as soon as next year. LG Display is also planning to invest $13 billion in OLED production over the next three years, continuing its dominance in the OLED TV screen market and specifically hoping to "make inroads against rival Samsung in smartphone displays."

Related Forum: iPhone

Top Rated Comments

JPack Avatar
87 months ago
I find it kind of funny that Samsung is basically the only company that can actually supply OLED screens to Apple in the right capacity to launch the iPhone 8 and yet they don't use this as a competitive advantage over Apple.

The iPhone 8 design is heavily dependent on using an OLED screen. If Samsung didn't agree to supply the OLED screens to Apple, there would be no iPhone 8.

I'd be curious to know what kind of secret agreement there is between Apple and Samsung. It can't be just about producing screens and getting a little bit more money out of it.
You overestimate the dependence on OLED and Samsung's competitive advantage. Using OLED is hardly a make or break feature for iPhone. If Apple can remove Touch ID, do you really think OLED is a must? Is there some major deficiency with the iPhone 7 display that needs fixing?

At least one other Korean and three other Chinese companies are producing OLED. Being the sole supplier is not just "a little bit more money." It's a lot of money supplying 200 million units. The Samsung Group is a conglomerate because they do large scale businesses and cut other competitors out. Not supplying Apple with OLED and letting LG, Tianma, BOE, and CSOT take the business this year or next year is short sighted.
Score: 7 Votes (Like | Disagree)
Zirel Avatar
87 months ago
I find it kind of funny that Samsung is basically the only company that can actually supply OLED screens to Apple in the right capacity to launch the iPhone 8 and yet they don't use this as a competitive advantage over Apple.
Because people want an iPhone and not a Samsung, even if the Samsung has an OLED screen.

And because OLED technology is not exclusive to Samsung. If they don’t give Apple the OLEDs, LG and others would be happy to serve.

Is that difficult to understand?
Score: 5 Votes (Like | Disagree)
truthertech Avatar
87 months ago
I find it kind of funny that Samsung is basically the only company that can actually supply OLED screens to Apple in the right capacity to launch the iPhone 8 and yet they don't use this as a competitive advantage over Apple.

The iPhone 8 design is heavily dependent on using an OLED screen. If Samsung didn't agree to supply the OLED screens to Apple, there would be no iPhone 8.

I'd be curious to know what kind of secret agreement there is between Apple and Samsung. It can't be just about producing screens and getting a little bit more money out of it.
That's not how it works in the business world. First, there would be a new 7s and a new 8, even if it didn't have an OLED screen and there will be many other advances beyond the OLED. The current phone doesn't have OLED, yet smokes Samsung's best phones by such a massive amount in sales that they aren't in the same league.

More importantly, Samsung is a conglomerate and it would be insanity for Samsung to forego billions of dollars in profits, this year and in subsequent years from the sale of OLED screens to Apple. Whatever small percentage of people who would not purchase an iPhone simply because it didn't have an OLED screen would bring an insignificant amount of revenue to Samsung compared to the loss of billions.
Score: 5 Votes (Like | Disagree)
JPack Avatar
87 months ago
Apple sells roughly around 45 million iPhone per quarter. Only 92 million OLED panels for two years won't be enough to supply everyone with the new OLED iPhone. Therefore many Apple fans won't be able to get the new OLED iPhone on time, even if they can afford one, thus forced to get the iPhone 7S (or something else, but Apple fans will always get iPhone).

Let's assume that both LG and Samsung can provide 200 million panels a year, but only 70 million this year won't be enough for everyone to get OLED...
Not every Apple phone sold is a flagship phone. Apple continues to sell iPhone 6S and SE.

If you look at calendar Q1'17, only 15-20 million units sold per quarter are the flagship iPhone 7 Plus.
Score: 3 Votes (Like | Disagree)
LoveToMacRumors Avatar
87 months ago
Time for mass production. Let's go Apple
Score: 2 Votes (Like | Disagree)
ChromeCloud Avatar
87 months ago
I find it kind of funny that Samsung is basically the only company that can actually supply OLED screens to Apple in the right capacity to launch the iPhone 8 and yet they don't use this as a competitive advantage over Apple.

The iPhone 8 design is heavily dependent on using an OLED screen. If Samsung didn't agree to supply the OLED screens to Apple, there would be no iPhone 8.

I'd be curious to know what kind of secret agreement there is between Apple and Samsung. It can't be just about producing screens and getting a little bit more money out of it.
Score: 2 Votes (Like | Disagree)

Popular Stories

reset password request iphone

Warning: Apple Users Targeted in Phishing Attack Involving Rapid Password Reset Requests

Tuesday March 26, 2024 4:34 pm PDT by
Phishing attacks taking advantage of Apple's password reset feature have become increasingly common, according to a report from KrebsOnSecurity. Multiple Apple users have been targeted in an attack that bombards them with an endless stream of notifications or multi-factor authentication (MFA) messages in an attempt to cause panic so they'll respond favorably to social engineering. An...
iPhone Home Screen Gradient Blank Spaces 1

Sources: iOS 18 Lets Apps Be Placed Anywhere on Home Screen Grid

Sunday March 24, 2024 1:33 pm PDT by
iOS 18 will give iPhone users greater control over Home Screen app icon arrangement, according to sources familiar with the matter. While app icons will likely remain locked to an invisible grid system on the Home Screen, to ensure there is some uniformity, our sources say that users will be able to arrange icons more freely on iOS 18. For example, we expect that the update will introduce...
iPad Pro 2024 Landscape Camera Feature

New iPad Pro Again Rumored to Feature Landscape Front-Facing Camera

Monday March 25, 2024 5:43 am PDT by
The next-generation iPad Pro will feature a landscape-oriented front-facing camera for the first time, according to the Apple leaker known as "Instant Digital." Instant Digital reiterated the design change earlier today on Weibo with a simple accompanying 2D image. The post reveals that the entire TrueDepth camera array will move to the right side of the device, while the microphone will...
sonoma desktop wwdc

Apple Releases macOS Sonoma 14.4.1 With Fix for USB Hub Bug

Monday March 25, 2024 10:10 am PDT by
Apple today released macOS Sonoma 14.4.1, a minor update for the macOS Sonoma operating system that launched last September. macOS Sonoma 14.4.1 comes three weeks after macOS Sonoma 14.4. The ‌‌‌‌macOS Sonoma‌‌ 14.4‌.1 update can be downloaded for free on all eligible Macs using the Software Update section of System Settings. There's also a macOS 13.6.6 release for those who...
maxresdefault

Apple Announces WWDC 2024 Event for June 10 to 14

Tuesday March 26, 2024 10:02 am PDT by
Apple today announced that its 35th annual Worldwide Developers Conference is set to take place from Monday, June 10 to Friday, June 14. As with WWDC events since 2020, WWDC 2024 will be an online event that is open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. WWDC 2024 will include online sessions and labs so that developers can learn about new...
Generic iOS 18 Feature Purple

iOS 18 Will Finally Bring This Android Feature to iPhone

Monday March 25, 2024 6:42 am PDT by
iOS 18 will allow iPhone users to place app icons anywhere on the Home Screen grid, according to sources familiar with development of the software update. This basic feature has long been available on Android smartphones. While app icons will likely remain locked to an invisible grid system on the Home Screen, our sources said that users will be able to arrange icons more freely on iOS 18....
apple maps 3d feature

Apple Maps May Gain Custom Routes With iOS 18

Tuesday March 26, 2024 3:10 pm PDT by
Apple may be planning to add support for "custom routes" in Apple Maps in iOS 18, according to code reviewed by MacRumors. Apple Maps does not currently offer a way to input self-selected routes, with Maps users limited to Apple's pre-selected options, but that may change in iOS 18. Apple has pushed an iOS 18 file to its maps backend labeled "CustomRouteCreation." While not much is revealed...
iphone reasons to upgrade

Apple Outlines 'Reasons to Upgrade' Your iPhone on New Website

Monday March 25, 2024 12:53 pm PDT by
Apple today added a "Why Upgrade" section to its website, which is aimed at encouraging customers with older iPhones to upgrade to a newer model. The website allows customers to compare the iPhone 11, 11 Pro, 11 Pro Max, 12, 12 mini, 12 Pro, and 12 Pro Max to the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, or iPhone 15 Pro Max. Each comparison shows what new features someone with an older...