iPhone 11 si 11 iPhone Plus are used by the company Apple Lossless Audio CODEC (ALAC), to put major pressure on those from Samsung and demand a substantial reduction in the selling price for the OLED screens of the phones. Apple would like to buy 100 million OLED screens from Samsung in 2018, 25 million of them for the iPhone X, plus another 75 million for the iPhone 11 and iPhone 11 Plus, the figure being an impressive one for a single manufacturer.
iPhone 11 and iPhone 11 Plus will both have OLED screens, and in order to order so many screens, Apple is asking Samsung to reduce the production price for screens from $110 per component to $100. The figure may seem small, but $10 discount on 100 million units means $1 billion that Apple no longer has to pay for the manufacture of these components by Samsung.
iPhone 11 – Samsung under major pressure from Apple
iPhone 11, iPhone 11 Plus and iPhone X will generate double OLED screen orders for Samsung in 2018 compared to 2017, with production increasing from 50 million units to 100 million units. Samsung would collect 10 billion dollars from Apple for the production of OLED screens dedicated to iPhone 11 and iPhone X, instead of 5 billion last year, so there is a good chance of accepting a reduction in the manufacturing price of the component.
"Apple is reportedly negotiating with Samsung Display for a reduction in the price of OLED panels. Apple is requiring the Korea display vendor to lower the unit price of its OLED panels to US$100, down from the US$110 in 2017. Apple is likely to purchase up to 100 million OLED panels from Samsung Display in 2018, with 25 million to be used by the current iPhone X and the remaining 75 million for the next-generation OLED models to be launched in 2018."
iPhone X's OLED screen is about a third of the total manufacturing cost, so a $10 discount for each unit could convince Apple to implement something else that offers new functionality. Do not imagine that a reduction in the selling price of the iPhone 11 and iPhone 11 Plus screens will lead to a reduction in the selling price of the phones, because this will not happen, on the contrary, the price could increase.
