] Samsung Display will supply Apple with between 180 to 200 million flexible OLED panels for the iPhone in 2018, according to industry sources on Dec. 20.
That’s around four times the amount it supplied this year, and translates into roughly US$19.8 to US$22 billion revenue at the supply price of US$110 based on calculations by IHS Markit -- including the price of the cover glass and touch sensor.
This year, Samsung Display has reportedly supplied around 50 million panels for the iPhone X.
Improved yield rates at Samsung’s A3 panel production lines are being cited as the main reason behind the display maker’s decision to increase supplies to Apple next year.
Earlier this year, the A3’s yield rate was around 60 percent, but it stood at over 80 percent in the latter half of the year.
“It looks like the yield rates have reached almost 90 percent, and the fact that Samsung reached such levels even after the world’s highest quality flexible OLED standards were applied, is quite significant,” said one industry watcher.
With a 90 percent yield rate, Samsung Display can churn out around 224 million 6-inch panels per year. The display maker had initially considered supplying to Apple by investing in its A5 new lines, but decided to stick with its existing lines. Brokerages expect Samsung Display’s quarterly small to midsized OLED sales to exceed 10 trillion beginning in 2018. LCD sales will remain at around 2 trillion won.
By Bae Ok-jin (firstname.lastname@example.org) (email@example.com
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