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.

A recent concept of the OLED iPhone 8 via Max Rudberg

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."

Top Rated Comments

(View all)
Avatar
41 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)
Avatar
41 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)
Avatar
41 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)
Avatar
41 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)
Avatar
41 months ago
Time for mass production. Let's go Apple
Score: 2 Votes (Like | Disagree)
Avatar
41 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)

Top Stories

iOS 14 Widgets Offer iPhone Users Creative Home Screen Ideas

Sunday September 20, 2020 8:43 pm PDT by
In iOS 14, Apple introduced ‌the concept of Home Screen‌ widgets, which provide information from apps at a glance. Widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. Despite the relative lack of 3rd party widgets at launch, iOS users around the...

iPhone 12 Lineup Rumored to Be Named 'iPhone 12 mini,' 'iPhone 12,' 'iPhone 12 Pro,' and 'iPhone 12 Pro Max'

Monday September 21, 2020 5:24 am PDT by
Leaker known as "L0vetodream" has today shared the alleged naming for the upcoming iPhone 12 lineup on Twitter. The tweet proposes that the upcoming iPhone 12 models will be titled "iPhone 12 mini," "iPhone 12," "iPhone 12 Pro," and "iPhone 12 Pro Max." The names likely correspond to the three expected sizes of iPhone 12, with the 5.4-inch model being the iPhone 12 mini, the 6.7-inch model ...

Hands-On With the New Apple Watch Series 6 and Apple Watch SE

Friday September 18, 2020 1:19 pm PDT by
Today's the official launch date for the Apple Watch Series 6 and the Apple Watch SE, both of which Apple announced on Tuesday. We picked up a couple of the new models and thought we'd give them a quick look for MacRumors readers thinking of ordering a new watch. Apple Watch Series 6 & Apple Watch SE Hands-On! When it comes to design, both the $399 Series 6 and the $279 SE look just like...

iOS 14 Picture in Picture No Longer Working With YouTube's Mobile Website in Safari [Without Premium]

Friday September 18, 2020 12:21 pm PDT by
Apple in iOS 14 added Picture in Picture to the iPhone, a feature designed to let you watch a video in a small screen on your device while you continue to do other things on the phone. When Picture in Picture was working with YouTube The YouTube app doesn't support Picture in Picture, but up until yesterday there was a functional workaround that allowed videos from YouTube.com to be watched...

When Will the iPhone 12 Launch? Here's What We Know

Wednesday September 16, 2020 6:12 am PDT by
Yesterday's "Time Flies" Apple event saw the release of the Apple Watch Series 6, Apple Watch SE, iPad 8, and iPad Air 4, but no new iPhone models. Rumors before the event strongly alleged that it would not see the unveiling of new iPhones, with many reports pointing to an October launch. The lack of new iPhone models yesterday seems to confirm that the iPhone 12 lineup will not appear...

Here's How You Can Download iOS 14 and iPadOS 14 Around the World [It's Out]

Wednesday September 16, 2020 2:36 am PDT by
Apple's official public release of iOS 14 and iPadOS 14 dropped on Wednesday, September 16, just a day after the company released the Golden Master to third-party developers. Also set to be made available to the general public for the first time are watchOS 7 and tvOS 14. Getting Started With iOS 14 Video Click image to watch iOS 14 Getting Started While that's left a lot of developers...

AirPods Studio Rumored to Come With U1 Chip, Ultra-Wideband Said to Be Vital to Future Apple Ecosystem

Sunday September 20, 2020 6:17 am PDT by
Proven leaker known as "L0vetodream" has today shared a range of information about the ultra-wideband U1 chip in Apple's upcoming AirTags item trackers and AirPods Studio headphones. The first of a series of tweets shared today simply stated that AirPods Studio will contain an ultra-wideband U1 chip. It seems likely that the U1 chip would be used in AirPods Studio to track the location of...

Kuo: Apple to Accelerate Adoption of Mini-LED Displays in iPad and Mac Notebook Lineups

Sunday September 20, 2020 10:00 pm PDT by
Increased competition among Apple's suppliers for mini-LED display chips will accelerate the company's adoption of the advanced technology in its iPad and MacBook lineups, according to a new research note from analyst Ming-Chi Kuo seen by MacRumors. Kuo says that while Epistar had been predicted to be the exclusive supplier of mini-LED chips for Apple products in 2021, Sanan Optoelectronics...

Top Stories: Apple Event Recap, Apple Watch Series 6, Redesigned iPad Air, and More

Saturday September 19, 2020 6:00 am PDT by
This week's news was obviously dominated by Apple's media event and the launch of iOS 14, but there was a lot to digest, so check out our summary below for the high-level view of the past week. With the exception of the massively redesigned iPad Air, all of the new hardware introduced this week is starting to appear on store shelves and on customers' doorsteps, while all of the new software...

Apple Updates AirPods 2 and AirPods Pro Firmware to Version 3A283

Monday September 14, 2020 11:24 am PDT by
Apple today released new 3A283 firmware updates for the second-generation AirPods and the AirPods Pro. The second-generation AirPods are being updated from the 2D15 firmware they were previously running, while the AirPods Pros are being updated from the 2D27 firmware they had installed previously. Apple does not provide details on what's included in refreshed firmware so we don't know what's ...