Samsung OLED Production Lines For iPhone 8 Ramping Up To Full Capacity

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Samsung OLED Production Lines For iPhone 8 Ramping Up To Full Capacity

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As the launch of the iPhone 8 approaches, a new report suggests that Apple is claiming almost one third of Samsung’s OLED displays for the upcoming iPhone 8’s screens.

Samsung has reportedly geared up to operate seven of its next-generation OLED production lines at full capacity, all of which are dedicated to Apple and the iPhone 8. By ramping up their scale of production, Samsung Display, a unit of Samsung, is now able to manufacture about 45,000 panels a month for OLED displays, out of which 15,000 of them are allegedly reserved for Apple.

Samsung Display being the only supplier of the Apple iPhone 8’s OLED screens, the manufacturer, is said to further increase the production from 15,000 panels per month for Apple to 105,000 panels per month. The report says that full-scale production will begin later this month, with output capacity increasing by 700%.

At this rate and capacity, Samsung Display facilities are expected to yield approximately 130 million 5.8-inch screens per year. However, due to Apple’s specific requests, which involve “high degree of technical difficulty”, the actual production may decrease to 60% (which will amount to about 79 million displays for Apple iPhone 8).

Subsequently, the current reports of Samsung facing technical challenges during OLED display manufacturer for its future iPhones, seem to validate the rumours of production delays for the next iPhone, potentially leading to a limited iPhone 8 launch.

Though Samsung is currently reported to be the sole supplier of the OLED displays for the iPhone 8, it might not be the case for long. Apple seems to be already on a hunt for a new OLED display supplier for its future iPhones.

Recent announcements of Apple investing  $2.7 billion in LG Display to help set up new OLED production lines dedicated for the future iPhones seems a little less than promising for Samsung. Subsequently, LG is also planning to invest $13 billion in OLED production over the next three years in order to continue its dominance in the OLED TV screen market. The company hopes to “make inroads against rival Samsung in smartphone displays.” Irrespective, Samsung is building the world’s largest OLED production plant in hopes of getting future Apple orders.

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Anshika Jain