Apple wants to reduce the price it pays Samsung for OLED displays used in current and future iPhone X models, according to DigiTimes.

iphone x quad
The report, citing industry sources, claims Apple is requiring Samsung to lower its price to $100 per panel, down around 9.1 percent from the $110 that research firm IHS Markit estimated the iPhone maker paid in 2017.

Rather confusingly, the report first says Apple is negotiating with Samsung about the revised price, but later says it is a requirement.

If the price cut is indeed being forced upon Samsung, then Apple likely feels confident in its ability to secure OLED displays from LG as a second supplier, and is thereby benefitting from diversifying its supply chain and making its suppliers compete against each other on price in an effort to win millions of orders.

LG is widely considered to be ramping up its OLED display production capabilities in hopes of securing orders for Apple's next-generation iPhone lineup, but a recent report claimed mass production challenges have caused the company to fall behind schedule. It's unclear if those issues have been resolved.

Apple is expected to purchase up to 100 million OLED displays from Samsung in 2018, to be used for the current iPhone X, in addition to a second-generation iPhone X and so-called iPhone X Plus expected to launch in 2018.

Price cuts to the display and other components would help Apple lower its bill of materials for the iPhone X and future models, and the savings could potentially be passed on to customers. RBC Capital Markets analyst Amit Daryanani, for example, believes the second-generation iPhone X will start at $899, down from $999.

No doubt, Apple's own bottom line also stands to benefit from reduced production costs, so these negotiations are most likely par for the course.

Top Rated Comments

gsmornot Avatar
80 months ago
I'm seeking price cuts too.
Score: 18 Votes (Like | Disagree)
NexusUser Avatar
80 months ago
Yeah, because Apple is well known for passing savings on to their customers :rolleyes:
Score: 15 Votes (Like | Disagree)
DEMinSoCAL Avatar
80 months ago
So, let me get this straight...Apple demands that Samsung make LESS profit on the OLED displays so that Apple doesn't have to make less profit because they choose to lower the price of the phone?
Score: 8 Votes (Like | Disagree)
Chupa Chupa Avatar
80 months ago
Why cut the retail price if sales are strong?
Who said sales were "strong." Have not read that anywhere. Sales are decent enough for Apple to increase revenue, but only because X costs more. Everything I've been reading points to X sales having popped at launch then steep decline to current plateau. Some kind of value adjustment seems appropriate, either cut in price in added value in phone. Personally I think Apple got a tad greedy in how sold the X. I think it would have been a bigger hit if the entry level was 128GB, not 64. Apple played a game of chicken here and a lot of consumers put on the brakes not wanting to pay MacBook prices for a phone.

I bit because I was curious enough. I like my X but, honestly, is is worth the $1300 I paid. Nope. Anyone who thinks it is a fool. Apple has to find another way to increase revenue.
Score: 6 Votes (Like | Disagree)
Chupa Chupa Avatar
80 months ago
Apple shouldn’t cut the price of the flagship device. Any savings should be invested in new innovations, R&D, and giving some money back to loyal investors.
Right because Apple is cash poor and hurting for new R&D dollars. And, as an AAPL owner myself, we are don't own out of "loyalty." Stock ownership is not an emotional game. It's about making a good return. One doesn't own shares in a public company out of loyalty, friendship, belonging. It's not a club. As far as gains go we shareholders don't have that much to complain about even if the dividend is low. Certainly it's more than, say GOOG.

Apple wants to sell it's flagship product. If it's overpriced that's not happening. And that is not good for "loyal" shareholders.
Score: 6 Votes (Like | Disagree)
kdarling Avatar
80 months ago
Would it kill Apple to open their own factory to just make displays overseas?
Yes, it would :)

No way will Apple get their hands dirty by actually owning factories full of cheap workers and hazardous materials.

It would mean they couldn't make PR claims about being green and caring and all that.

That's why they invest money in such places without asking for actual ownership. Avoiding responsibility is the name of the game, especially when demanding lower profits and higher output from suppliers.
Score: 4 Votes (Like | Disagree)

Popular Stories

iOS 18 Siri Integrated Feature

Report: These 10 New AI Features Are Coming in iOS 18

Sunday May 26, 2024 12:57 pm PDT by
iOS 18 and macOS 15 will offer an array of new AI features such as auto-generated emojis, suggested replies to emails and messages, and more, Bloomberg's Mark Gurman reports. A significant portion of Apple's Worldwide Developers Conference (WWDC) is expected to focus on AI features. Writing his latest "Power On" newsletter, Gurman explained that Apple's AI strategy emphasizes providing...
new best buy blue

Best Buy's Memorial Day Sale Has Record Low Prices on iPads, MacBooks, and Much More

Friday May 24, 2024 7:12 am PDT by
Best Buy today kicked off its Memorial Day weekend sale, and it has some of the best prices we've tracked in weeks on iPads and MacBooks. Specifically, you'll find record low prices on the 5th generation iPad Air, iPad mini 6, M2 MacBook Air, and M3 MacBook Pro. Note: MacRumors is an affiliate partner with Best Buy. When you click a link and make a purchase, we may receive a small payment,...
iOS 18 WWDC 24 Feature 2

Gurman: iOS 18 Will Allow Users to Recolor App Icons and Place Them Anywhere

Sunday May 26, 2024 12:22 pm PDT by
Apple's iOS 18 update will introduce new features for further customizing the iPhone's home screen, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman claimed that Apple will allow users to change the color of app icons in iOS 18. For example, "you can make all your social icons blue or finance-related ones green." This kind of home screen...
Apple iPhone 14 color lineup feature

Apple Now Selling Refurbished iPhone 14 Models

Friday May 24, 2024 11:15 am PDT by
Apple today added refurbished iPhone 14, iPhone 14 Plus, iPhone 14 Pro, and iPhone 14 Pro Max devices to its online store for refurbished products, offering the prior-generation iPhones at a discount for the first time since their 2022 launch. The iPhone 14 is available starting at $619, the iPhone 14 Pro is available starting at $759, and the iPhone 14 Pro Max is available starting at $849. ...
top stories 25may2024

Top Stories: iOS 17.5.1 Fixes Concerning Photos Bug, All-New iPhone 17 Model Rumored, and More

Saturday May 25, 2024 6:00 am PDT by
It's been quite a week of Apple news and rumors, ranging from a concerning bug with deleted photos reappearing on users' devices to hot rumors about a new high-end iPhone model for 2025 and a MacBook with a foldable screen coming as soon as 2026. Other news and rumors this week included fresh expectations for iOS 18 features and new headphones from Sonos to compete head-to-head with AirPods...