Samsung is expected to earn $22 billion from iPhone X’s OLED displays

iPhone X will bring a huge payday for Samsung.

iPhone X has been a remarkable product by the Cupertino based tech giant, Apple. As for now, it appears that this remarkable gadget will bring good luck to Apple’s biggest rival Samsung. Just for a quick recall, the OLED displays used in iPhone X are actually manufactured by Samsung. Investor reports that Samsung could earn around $22 billion from the sales of OLED displays used in iPhone X.

Samsung Display which is an important part of the Samsung Electronics is expecting to sell between 180 to 200 million OLED panels to Apple which will be used in iPhone X. So far, Samsung has shipped around 50 million OLED panels to Apple in the year 2017. Initially, Apple’s iPhone X was facing supply constraints which eventually resulted in a poor yield of as low as 60%, due to following standard quality principle. However, the problem was resolved, as yield slightly improved afterward.

According to a new report from Korea Herald, the yield rate grows up at 80% later this year and is now reaching close to 90%. An industry analyst told Investor that at a 90% yield rate, the company is expecting to make 224 million panels every year. As the report states,

“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.”

The report also indicates that Samsung initially planned to invest in its A5 OLED lineup to supply Apple with the iPhone X displays. But later on, suspecting the production issues Samsung decided to stick with the existing A3 production line.

Furthermore, Samsung is also expecting increased sales of its small-to-medium sized display, alongside the growth of OLED panels for iPhone X.

Apple was also considering LG’s OLED display to use in iPhone X, but then it relied upon Samsung keeping in view the suspected supply constraints. Apple is also planning to build its own OLED panel manufacturing plant, but it is not going to happen anytime sooner. Both tech giants will continue to maintain their business relationship for the year 2018.

Image Source: Cnet