Samsung is one of the big powers in the smartphone industry and that is not only for its full built galaxy series. Samsung is also making and selling parts to competitors such as OLED displays to Apple. Yes, your iPhone OLED display is made by Samsung. Apple now is going to move to LG displays in order to have an advantage over Samsung by not telling them exactly what their next iPhone will look ad work like (in terms of the display). Considering the amount of money apple pays for the number of displays, Samsung is going to lose a big point of revenue.
All iPhones with LCD display have the panel made by LG. Apple and LG are working together for a long time and they built a very good relationship in which LG is creating one of the best LCDs on the market. This is proved by the great color accuracy and brightness of all iPhone models with LCD displays.
After iPhone X was released, and it came with OLED panels, Apple chooses Samsung as the supplier due to their quality and experience in creating good panes which will not burn after a year. LG could have been an option but their OLED panels were not at Apple’s expectation. From that moment all further iPhones (exception for iPhone 11 and SE 2) has Samsung OLED panels. However, for the iPhone 12 line-up, Apple ditches Samsung panels for LG.
The next iPhone 12 displays
The line-up last year has been made out of 3 versions of the iPhone 11 series.
- iPhone 11 with LCD display by LG
- iPhone 11 Pro with OLED display by Samsung
- iPhone 11 Pro Max with OLED display by Samsung
The iPhone 11 has an LCD display to reduce the cost and that is mostly because Samsung charges Apple a premium price as a competitor, therefore going with LG was a better option.
Another problem with Samsung is that they keep new technology exclusive to them only for 6 to 12 months and only after that they will sell it to other competitors. This way Apple could not be leading in the display category.
After 3 years of Samsung panels, LG had time to improve and show Apple that they are good enough to supply Apple and meet their expectation. LG actually started supplying a very small amount of OLED panels this year for the iPhone 11 line. And now, Apple is ready to fully move with LG for the entire line-up of the iPhone 12 in 2020.
Image courtesy: EverythingApplePro
Reports regarding the iPhone OLED supply
Samsung has been the only source for the OLED displays for a while and allowed them to control the entire market and creating a monopoly. Apple broke this last year when they choose to go with LG for a partial amount of displays and now this year Apple is going fully independent from Samsung.
The lineup this year will contain 4 iPhones which all will use OLED panels.
- iPhone 12 with a 5.4-inch display
- iPhone 12 Max with a 6.1-inch display
- iPhone 12 Pro with a 6.1-inch display
- iPhone 12 Pro Max with a 6.7-inch display
Apple is going full OLED and adding another phone in the line. Therefore, they need more panels and better supply.
Sources from TheElec is suggesting that all or nearly all of the iPhone 12 Max OLED displayed will be made by LG. This move by Apple will encourage other smaller brands to go to LG because they managed to meet Apple’s expectations. This move will hurt Samsung OLED manufacturing sales and will create competition that will always end up in better products overall.
Samsung will still receive the rest of around 55 million units of OLED displays for the other 3 iPhone models but slowly as LG increases the production capacity, we expect Samsung to no longer produce displays for Apple.
Apple wanted to reduce the dependency they had on Samsung and now they can. They will be able to produce exclusive displays without Samsung knowing and allowing them to change their strategy for the Galaxy series. LG will also offer better prices than Samsung due to the long relationship they had and due to Apple increasing its market share. LG won’t be an Apple exclusive so they will also work with other brands.
Image courtesy: EverythingApplePro
For the past 3 years, Samsung was the OLED supplier for Apple and many other brands which allowed them to create a monopoly in the market. Apple is not moving some of the orders to LG and starting to ditch Samsung for a better future without them. Currently, Apple’s main supplier is still Samsung but with fewer orders until LG will increase its production capacity. LG will most probably offer better prices than Samsung due to the long relationship they had in the past.