Apple’s rumored $900 starting price of the iPhone 8 has always been a popular topic to touch. Where some analysts claim it is due to a number of components running in the device, a different perspective from a different analyst shows that the high price is due to just a single component, the OLED screen. With Samsung being the sole supplier of such panels, the tech giant will command a higher asking price, thus forcing Apple to exponentially increase the price of the iPhone 8 in order to maintain healthy margins.
Apple Will Need To Search for Suitable OLED Suppliers if It Is to Maintain a Better Pricing Approach for Future iPhones, Claims Ming-Chi Kuo
Ming-Chi Kuo issued a note to investors on Wednesday, noting that Samsung currently holds a commanding bargaining position over Apple since it is the sole supplier of OLED panels for the iPhone 8 and possibly future devices. According to Kuo, he suspects that Samsung is charging Apple between $120 and $130 per display component. He also says that the price is much higher compared to the LCD screen that Apple was paying for the 5.5-inch iPhone 7 Plus, which was in the $45 to $55 range.
In order to bring down the price of future mobile devices, the analyst says that Apple will need to keep other alternatives in mind. We believe what he’s trying to say is not to get rid of Samsung, but to introduce other players in the OLED supply foray so that the Korean tech giant will command less bargaining power for the OLED component.
The only other manufacturer that will produce a decent supply for OLED screens for future iPhones is LG, but unfortunately, Apple demands a very high-quality component, a standard which can only be met by Samsung for now. Other players that might end up partnering with the California-based company are Japan Display and LG Display, but even with their future involvement, it is possible that Apple will need to heed Samsung’s pricing requests, at least to a smaller degree.
The manufacturer holds 97.7 percent of global OLED production, a statistic which was recorded in April of 2016. Do you think the price of future iPhones will decrease for the public if Apple introduces more partners down the road? Tell us down in the comments.
News Source: AppleInsider
