Everyone knows about the long-running rivalry between Apple and Samsung, whether over patents or features in their phones, with fanboys on both sides always eager to throw verbal punches at each other in the comments section of their favorite tech blogs. The animosity between the two companies has become so great that Apple might have decided to make an unexpected move by buying screens from one of its biggest rivals, Samsung. The news has been spreading like wildfire online, but are there any facts to back up this claim? Read on to find out more!
It’s no secret that Apple and Samsung have had a rocky relationship. The two companies are constantly pitted against each other in the smartphone market, and they’ve been known to copy each other’s products. So it’s no surprise that Apple is buying screens for their iPhones from Samsung. But before rushing out to buy an iPhone XR or XS, let’s break down what this might mean.
It all started as a rumor that Apple was having trouble sourcing enough of its own OLED displays for its new iPhone models. The company was considering buying some of these displays from Samsung Electronics Co., which would be a significant shift for both companies. However, the rumor was amended to say Apple is talking with suppliers about contingency plans should it run into production problems.
In other words, Apple may have discussed purchasing screens from Samsung as one possible solution in case of unforeseen delays with production – but not necessarily as part of any larger deal or partnership between the two corporations.
Why Did Apple Decide to Buy Screens for their iPhones from Samsung?
According to reports, Apple decided to buy iPhone screens from Samsung. This decision is not yet apparent, but it could be because Samsung is one of the few companies that can mass-produce OLED displays. OLED displays are superior to LCDs in image quality, power consumption, and thickness, so it makes sense that Apple would want to use them in their flagship product. However, it remains to be seen whether or not this decision will lead to better iPhone sales.
Where Are the Samsung OLED Screens Produced?
The production of the screens takes place at a Samsung factory in Asan, South Korea. About 70 percent of the world’s smartphone displays are manufactured in this city. The deal between Samsung and Apple is estimated to be worth $2.59 billion. This is not the first time the two companies have worked together; in 2013, Samsung supplied OLED panels for the iPhone 5s. Although there is no confirmation whether these screens will also be used on the next iPhone, it is said that they will complement the company’s existing screen suppliers.
It should also be noted that LG Display has already started manufacturing OLED displays for its products but has not disclosed whether or not it will supply them to Apple anytime soon.
What Are OLED Phone Screens?
You may have seen the term OLED used concerning phone screens, but what does it mean? OLED stands for organic light-emitting diode. In layman’s terms, this means that the pixels in an OLED screen emit their own light. This contrasts with LCD screens, which use a backlight to illuminate the pixels.
The benefit of OLED screens is that they can be made thinner and lighter than traditional LCD screens while producing deeper blacks and brighter colors. However, because they are more expensive to produce than LCD screens, they are not as common on smartphones as on TVs.
Production volume of OLED Phone Screens at Samsung
According to industry experts, Samsung currently produces most OLED phone screens on the market. In 2017, they made over 95% of all OLED phone screens. If Apple were to purchase OLED screens from them, it would undoubtedly increase production volume at Samsung.
One concern is that this could lead to a monopoly as not many other companies can produce OLED screens like Samsung. But another concern is that if Apple’s demand drops due to lower sales numbers, this will lead to fewer purchases from Samsung and potentially layoffs.
Which are the Alternative Companies That Can Supply OLED Screens to Apple?
Although Apple has not confirmed, it is speculated that they are indeed buying OLED screens for their iPhones from Samsung. If this is true, it would be a surprising move given the two companies history. Other companies, such as LG and Sharp, could supply OLED screens to Apple.
However, it is unclear if these companies would be able to meet the high demand. Furthermore, there are rumors that some Chinese manufacturers are also trying to get in on the action. In addition, some analysts speculate that China is still upset about being excluded from bidding on the Pentagon’s drone contracts, so Apple may be hesitant to work with them because of political implications.
Can Samsung Still Compete with Apple in the Smartphone Market with this Move?
There are mixed opinions about whether Apple is buying screens for their iPhones from Samsung. Some say that this move signifies that Samsung is losing its competitive edge to Apple in the smartphone market. Others argue that this could be a strategic move by Apple to make it appear as though they are superior to Samsung.
Only time will determine what the true impact of this partnership will be. One thing is for sure; Apple has lost one of its key advantages over Samsung in the smartphone market. The company will no longer have a direct supply chain regarding displays, and some experts believe this can negatively affect pricing and product quality.
If you’re an Android user, you might want to hold off on updating your device any time soon because your phone may get even more expensive than before!
Will Samsung’s OLED Tech Trump that of Japan Display, Sharp, and LG Display?
It’s no secret that OLED display technology is the future of smartphone screens. It looks like Samsung may have the upper hand in supplying OLED panels to Apple. As per the report by The Korea Herald, Samsung agreed to provide OLED panels for at least some of the new iPhone models released in 2018.
This news was a bit of a surprise, as Apple sourced its iPhone displays from Japan Display, Sharp, and LG Display. Why the change of heart now? This move by Apple was initiated by none other than Samsung themselves!
After South Korean rival LG Display decided to provide only one model with an OLED screen, Korean media reported that Samsung approached Apple with an offer. Samsung looks pretty confident about its dominance in this industry. “Indeed, we are currently providing some solutions (to Apple), but I don’t know how much more (Apple will buy),” said company spokesman Hong Won-Pyo during an interview with Reuters. The circumstances can change depending on how much they will buy.
It’s an open secret that Apple and Samsung have a complicated relationship. They’re fierce competitors in the smartphone market, but they also have a longstanding partnership in which Samsung supplies parts for Apple products. According to a new report, that partnership may extend to iPhone screens. Bloomberg reported that the Cupertino-based company is purchasing large quantities of displays from Samsung Display to reduce its reliance on its Chinese manufacturing partner, Foxconn. The screens are being purchased as part of Apple’s so-called Project Marzipan, a cross-platform development strategy allowing developers to create iOS and macOS apps using the same code base.