Apple negotiating with Samsung for reducing OLED pricing

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Apple is looking to boost sales of their OLED screen Models by price reduction

Apple is rumoured to have been in talks with Samsung, their OLED panels providers, for a price reduction. With Samsung’s contract with Apple coming to an End this year, Apple is leaving no stone unturned to get the best deal out of them. The move comes ahead as no surprise as Apple is looking to boost sales of their OLED models, owing to the fairly poor sale last year.

Apple is looking towards cutting the price of displays and other components which would help Apple lower its bill of materials for the iPhone X and future models, and the savings could potentially be passed on to customers.

Apple Inc wants the Samsung Display to lower down their price to $100 compared to $110 last year. Seems a meagre reduction from Apple? I guess it’s not. Apple is in talks to purchase an enormous 100 million OLED panels from Samsung this year, a quarter of which might be used for the current iPhone X and the remaining might be put to use for their next generation beast of 2018. iPhone, as mentioned in our previous reports, aims at using OLED panels for their 5.8 and 6.5-inch model. So that’s $10*100million = 10000 million savings. Cheeky from apple. However, the 6.1-inch model is going to sport a 6.1-inch LCD panel as reported earlier by us.

Apple was rumoured to be in talks with LG for the OLED panels supply. The company had plans of splitting OLED panel orders for this year’s iteration of iPhones between Samsung and LG. However, according to reports, LG’s production numbers are lousy. As per recent reports, LG is struggling to spike up their production target.

However, if Apple is successful in pressurising Samsung for the price reduction. LG might come on top as the minority supplier of this year’s OLED iPhones. This move can be seen as a masterstroke by Apple to bid their rivals against each other on the price factor. With Apple looking towards companies like Japan Display and BOE for 2019 iPhones, Samsung might have to fudge in if they wanna continue running in the race.

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