Samsung Begins Running OLED Production Lines for iPhone 8 at Full Capacity

[MacRumors]

As we enter the season of iPhone production ramp-up stories, news out of Apple's supply chain today reports that Samsung Display is gearing up to operate seven of its next-generation OLED lines at full capacity in August, all of which are dedicated to Apple and the iPhone 8.

According to ETNews, the OLED ramp-up follows a series of inspections that Samsung made on each of the seven lines over the past few weeks in preparation for Apple's much-anticipated OLED-only iPhone 8. Samsung Display is the only supplier of OLED screens for the 2017 iPhone, and the manufacturer is said to see an increase from 15,000 panels per month to 105,000 panels per month following the full scale production increase.

A recent concept of the OLED iPhone 8 via Max Rudberg​

Samsung Display crafts multiple iPhone screens out of a single of its OLED panels, so if it keeps its production lines at maximum capacity with 100 percent yield, the supplier can produce 130 million 5.8-inch OLED iPhone screens in one year. Of course, the reality is that OLED is difficult to manufacture, and industry watchers believe that the yield rate for the Samsung Display OLED iPhone 8 line will be "at least" 60 percent. Multiple reports this year have pointed towards production delays in the supply chain, potentially leading to a limited capacity iPhone 8 launch.

While Samsung Display will be the sole OLED supplier for the 2017 iPhone, numerous sources have said that a new supplier -- LG Display -- will enter Apple's OLED supply chain in 2018. Apple is said to have invested $2.6 billion into LG Display to help the supplier get set up as a major OLED manufacturer for future iPhones, with Apple pressing LG to be ready as soon as next year. LG Display is also planning to invest $13 billion in OLED production over the next three years, continuing its dominance in the OLED TV screen market and specifically hoping to "make inroads against rival Samsung in smartphone displays."

Article Link: Samsung Begins Running OLED Production Lines for iPhone 8 at Full Capacity

 

[826317]

Can we expect a normal September release?

 

[Andres Cantu]

Where are the part leaks???

 

[nabeel24]

Looks like there's gonna be a long wait to get hands on the O-LED model.

On the other hand, we should be getting more screen leaks pretty soon!

 

[profets]

Where are the part leaks???

Sounds like (by rumour anyway) that mass production has just started (not just the screen, but phone as well). Wonder if we'll start to see some part leaks over the coming weeks.

 

[Sunny1990]

Really hope Samsung fills all the orders on time, So we don't face shortages on release day.

 

[Zaft]

It may bot be fully in stock until April 2018 I bet.

 

[Pbrutto]

I just hope the iPhone upgrade program has been fixed! If it releases "late" its whatever, but I don't want to wait till January because Apple can't get there preorder fixed. (Also, don't like being up till 3am for nothing)

 

[newyorksole]

It may bot be fully in stock until April 2018 I bet.

I hope they have a better system for people on the iPhone Upgrade Program.

 

[manu chao]

Slightly off topic, does anybody know any LCD or OLED displays with a concave outline (as the notch in the iPhone 8 would require)?

 

[ChromeCloud]

I find it kind of funny that Samsung is basically the only company that can actually supply OLED screens to Apple in the right capacity to launch the iPhone 8 and yet they don't use this as a competitive advantage over Apple.

The iPhone 8 design is heavily dependent on using an OLED screen. If Samsung didn't agree to supply the OLED screens to Apple, there would be no iPhone 8.

I'd be curious to know what kind of secret agreement there is between Apple and Samsung. It can't be just about producing screens and getting a little bit more money out of it.

 

[gaximus]

Where are the part leaks???

Don't need them this time around when Apple is leaking everything

 

[PsykX]

(My) bad Photoshop skills are bad, but why wouldn't it look this this instead, so that the cutout at the top doesn't show anymore ?

 

[WannaGoMac]

Wow its gonna be like 6 months to get an iPhone 8

 

[44267547]

Can we expect a normal September release?

We will know in September.

 

[ck2875]

​

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There's no way it's going to look like the mockup on the right considering Apple's use of continuous curves in all of their design and not simply rounded corners (like the top two corners of the right mockup). There's a subtle difference, but it makes the edges flow into one another much better.

Even their icons use the continuous curves post iOS 7.

Regardless, let's hope Samsung churning out the displays at full capacity is enough.

 

[JPack]

I find it kind of funny that Samsung is basically the only company that can actually supply OLED screens to Apple in the right capacity to launch the iPhone 8 and yet they don't use this as a competitive advantage over Apple.

The iPhone 8 design is heavily dependent on using an OLED screen. If Samsung didn't agree to supply the OLED screens to Apple, there would be no iPhone 8.

I'd be curious to know what kind of secret agreement there is between Apple and Samsung. It can't be just about producing screens and getting a little bit more money out of it.

You overestimate the dependence on OLED and Samsung's competitive advantage. Using OLED is hardly a make or break feature for iPhone. If Apple can remove Touch ID, do you really think OLED is a must? Is there some major deficiency with the iPhone 7 display that needs fixing?

At least one other Korean and three other Chinese companies are producing OLED. Being the sole supplier is not just "a little bit more money." It's a lot of money supplying 200 million units. The Samsung Group is a conglomerate because they do large scale businesses and cut other competitors out. Not supplying Apple with OLED and letting LG, Tianma, BOE, and CSOT take the business this year or next year is short sighted.

 

[Zirel]

I find it kind of funny that Samsung is basically the only company that can actually supply OLED screens to Apple in the right capacity to launch the iPhone 8 and yet they don't use this as a competitive advantage over Apple.

Because people want an iPhone and not a Samsung, even if the Samsung has an OLED screen.

And because OLED technology is not exclusive to Samsung. If they don’t give Apple the OLEDs, LG and others would be happy to serve.

Is that difficult to understand?

 

[CygnusTC]

Wow....a 60% or more yield rate? That is crazy! What happens to the production that is considered failed? Garbage? Shows up in cheap Chinese knockoffs? That is amazing to think that is the best yield rate nowadays.....

 

[NBAasDOGG]

Apple needs at least 8-10 million OLED panels per month to have a proper release. Or else we are forced to get the 7S....

 

[truthertech]

I find it kind of funny that Samsung is basically the only company that can actually supply OLED screens to Apple in the right capacity to launch the iPhone 8 and yet they don't use this as a competitive advantage over Apple.

The iPhone 8 design is heavily dependent on using an OLED screen. If Samsung didn't agree to supply the OLED screens to Apple, there would be no iPhone 8.

I'd be curious to know what kind of secret agreement there is between Apple and Samsung. It can't be just about producing screens and getting a little bit more money out of it.

That's not how it works in the business world. First, there would be a new 7s and a new 8, even if it didn't have an OLED screen and there will be many other advances beyond the OLED. The current phone doesn't have OLED, yet smokes Samsung's best phones by such a massive amount in sales that they aren't in the same league.

More importantly, Samsung is a conglomerate and it would be insanity for Samsung to forego billions of dollars in profits, this year and in subsequent years from the sale of OLED screens to Apple. Whatever small percentage of people who would not purchase an iPhone simply because it didn't have an OLED screen would bring an insignificant amount of revenue to Samsung compared to the loss of billions.

 

[JPack]

Wow....a 60% or more yield rate? That is crazy! What happens to the production that is considered failed? Garbage? Shows up in cheap Chinese knockoffs? That is amazing to think that is the best yield rate nowadays.....

Goes to Apple Watch.

 

[tchadrainwater]

I find it kind of funny that Samsung is basically the only company that can actually supply OLED screens to Apple in the right capacity to launch the iPhone 8 and yet they don't use this as a competitive advantage over Apple.

The iPhone 8 design is heavily dependent on using an OLED screen. If Samsung didn't agree to supply the OLED screens to Apple, there would be no iPhone 8.

I'd be curious to know what kind of secret agreement there is between Apple and Samsung. It can't be just about producing screens and getting a little bit more money out of it.

That's not how these things work, 1st they are separate divisions and departments and also there is a crazy diabolical tight agreement of non-supply chain, we create a media block that get manufactured by Dolby yet they don't and can't copy it.

 

[44267547]

Apple needs at least 8-10 million OLED panels per month to have a proper release. Or else we are forced to get the 7S....

Where did you come up with these assertions? Apple doesn't "Force" anyone to purchase their products. The consumer has options.

Apple placed an order for 70 Million OLED panels with Samsung, which they will supply Apple up to 92 Million OLED panels until 2019. Furthermore, Apple reportedly will be using LG as a future OLED panel supplier after Samsung For the majority of their iPhone line up. Seems Apple has enough competence to plan for the future.

"Apple is reportedly in talks with LG Display to invest about 2 to 3 trillion won (US$1.75-2.62 billion) into the Korean display maker’s new OLED production lines exclusively dedicated to Apple orders. "

https://www.macrumors.com/2017/07/03/apple-lg-display-oled-iphones/amp/

https://www.macrumors.com/2017/04/03/apple-orders-70m-iphone-panels-from-samsung/amp/

 

[LoveToMacRumors]

Time for mass production. Let's go Apple