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Samsung's OLED Display Monopoly May Explain iPhone 8's Rumored $1,000 Price
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That figure pertains to substrate panels. kdarling explained it here when this question came up in the past. Multiply that 45,000 by a factor of between 120-200, and you end up with millions of individual displays per month.
Truth is Apple have had crazy high profit margins due to usage of low cost components like the same 750p LCD panel from Japan Display Inc that's used in <$100 Android devices. Now that Apple has caught up to the rest of the industry as far as component technology they're maintaining the crazy high margins and passing the cost to consumers.
Samsung's "monopoly" on mobile AMOLED has been going on for almost a full decade now -- with 90+% market share. I just don't see another competitor able to challenge Samsung's dominance any time soon, as in maybe for another 8 or 10 years.
You stuck in the past or something? Samsung has had color-accurate modes on the Galaxy S series for several years now. Over-saturation is no longer an issue unless the manufacturer wants it to be.
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Well, Samsung was making Apple's APs in Austin, TX but Apple decided to outsource it to TSMC in Taiwan a few years back. Remember when Cook proudly claimed Apple iPhone's engines were made in America? Only to ditch Samsung's manufacturing in America to TSMC's in Taiwan?
I don't think Apple's interest is closely aligned with America's manufacturing.
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So basically it has nothing to really do with Samsung overcharging. It has more to do with Apple overcharging.
The iPhone 8 as they are calling it is a replacement for the plus phones since it's a 5.8" screen. I'd start with the first plus model pricing. Not the smaller phone.
Replacement for the plus? Pretty sure they're releasing a 7S, 7S+, and the 8 (probably called Edition X)
Who's fault is that? 38% is not a lot. 17% is a just over break even strategy. Apple doesn't operate in cheap low margins goods. Many copies operate at 100+% margins...
OLED screens have been used for 7 or 8 years now. This has nothing to do with Google.
That extra 21% margin is all attributed to the shiny apple logo sticker.
But then, OLED will also have the best camera, both rear and front. And with that the cool new face-recognition tech, and probably the larger screen but same overall size as the bezel-laden non-OLED phones...
Personally, if the non-OLED phones has the same class camera as OLED phones, I will go for non-OLED option.
The Samsung Note 8 has the most accurate mobile screen ever. Have a read.
http://www.displaymate.com/Galaxy_Note8_ShootOut_100.htm
· High Absolute Color Accuracy for Each of the Screen Modes
All of the recent Galaxy OLED Smartphones have supported multiple Color Gamut Standards, including DCI-P3, Adobe RGB, and sRGB / Rec.709. For each of the Screen Modes we carefully measure the Absolute Color Accuracy using an advanced series of spectroradiometer measurements with 41 Reference Colors that provide a detailed map of the Color Accuracy throughout the entire Color Gamut for each Screen Mode. Absolute Color Accuracy is measured in terms of Just Noticeable Color Differences, JNCD. See this Figure for an explanation and visual definition of JNCD and the detailed Color Accuracy Plots showing the measured Color Errors for the 41 Reference Colors for each Color Gamut.
In order to see the high Color Accuracy, the Display Setting for the Screen Mode needs to match the Color Gamut for the content that is being viewed. All of the reviewers that continue to rant about the poor Color Accuracy of the Galaxy OLED displays have failed to set the proper Screen Mode for their content, which is very accurate as shown in our extensive Lab Measurements and Viewing Tests.
For all of the calibrated Screen Modes, the Galaxy Note8 has uniformly Very Good to Excellent Absolute Color Accuracy, which are covered and measured individually below. See our detailed Absolute Color Accuracy Plots with 41 Reference Colors for the 3 calibrated Screen Modes and also this regarding Bogus Color Accuracy Measurements.
New Four Selectable Screen Modes and Color Gamuts
The Galaxy Note8 has four user selectable Screen Modes: Adaptive Display, AMOLED Cinema, AMOLED Photo, and the Basic Screen Mode, which matches the Standard sRGB / Rec.709 Color Gamut that is used for producing most current consumer content. See this Figure for the Color Gamuts of all the tested Screen Modes and the Colors and Intensities section for the measurements and details. Note that the Adaptive Display screen mode is the standard and factory default Screen Mode. Use Display Settings to switch between the other available Screen Modes.
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That’s a good analysis. The first incarnation of the retina in the iPhone 4/4S was impressive for its time. Though, the displays in the 6 through 7+ would be regarded as laughable if they shipped in a flagship Samsung device.
Apple certainly enjoyed massive margins on those inexpensive LCD panels.
thank you, i have been waiting for this test, not realizing it was already out.. Can't believe all my news sources failed me this time around.
On topic:
Samsung is in a very good position here. The display has been a big selling point of the Galaxy the last few years and Apple is one of the biggest competitors of them and now they need to buy the display from them. It's a dream come true for negotiations. No surprise they are going to charge alot. They'll probably earn more money through the iPhone than their own phone.. (At least in a few months, when their phone usually gets alot cheaper)
It will be interesting to see, if they actually sold the newest generation to apple or they keep it for their own phones.
And don't forget that Apple only produces 5 models of phones (7,7+,6S,6S+,SE). Or do they still manufacture the 6 series too? I don't know.
But anyway... that's gotta help them be more profitable by ordering more units each of fewer physical models. Different capacities and colors wouldn't affect this too much... as they are making millions of each component anyway. Volume is the key for profitablility: higher volume of fewer models.
In contrast... Huawei currently has 34 models on the market... most of which are completely different from one another. This requires different tooling for all the different cases, screens, buttons, etc.
Lower volume of a higher number of different models would raise the costs for Huawei.
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I agree, apple should have started a year earlier. In the hw/supply chain department, that is one of the few mistakes apple made these last years.
After the release of the s6, they should have started negotiatons and ramping up the supply chain, seeking partners, etc.
Perhaps 2 years ago they expected they could pass up on oled and go for microled straightaway.
The fact that they changed strategy and went for oled, means that for the next 3 to 4 years, microled tech/yields are not ready for the iphone.
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It does have a monopoly on producing oled displays for smartphone in massive quantities. LG doesn' t have the capacity to meet apple' s demand right now.
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Everything you said makes no sense "38% is not a lot" it's over 1/3 pure profit. "17% is a just over break even" no it's not; low single digit percents would be. I don't even know who "Many copies" are as you don't explain or give examples, jeez....
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Since the original Samsung Galaxy S.
Better yet; since the Samsung Wave series of phones.
Samsung is one of the only companies able to reliably mass produce OLED displays suitable for Apple's smartphone needs, giving Samsung a monopoly over OLED panel display and allowing the South Korean company to charge high prices.
In a new research note shared with investors this morning, KGI Securities analyst Ming-Chi Kuo says OLED iPhone panel supply is "controlled wholly by Samsung," with Samsung likely charging Apple $120 to $130 per OLED panel module, which is approximately $75 more than the 5.5-inch LCD module price of $45 to $55 for "Plus" sized iPhones.
The high price Apple is currently shelling out for OLED displays explain in part why we're hearing rumors suggesting pricing on the upcoming OLED-equipped "iPhone 8" could start at somewhere right around $1,000 for the entry-level model. Along with an OLED panel, it also uses 3D sensor camera components for facial recognition and many other advanced components that could also add a premium to the price.
OLED displays being provided by a single manufacturer may also explains some of the rumors we've heard about manufacturing difficulties and supply constraints. We're still expecting the new OLED iPhone to be available in limited quantities for several months after its launch.
Kuo says Apple urgently needs to find another company that can supply OLED displays, and Apple is making an effort to do so. Apple is said to be investing billions in LG's OLED smartphone production with the goal of eventually securing 45,000 panels per month for future iPhones starting in 2019.
Apple is also rumored to have purchased OLED display production machinery from a company in Taiwan to research OLED technology in order to cut down on its reliance on Samsung, and there have been rumors pointing towards a partnership with Japan Display.
Until Apple is able to diversify its OLED supply chain, it will be difficult for the company to secure enough inventory at a reasonable enough price to build a full iPhone lineup with OLED panels, which is its ultimate goal for 2018 or 2019. This year, Apple will introduce one OLED iPhone and two iPhones that use standard LCD panels.
Article Link: Samsung's OLED Display Monopoly May Explain iPhone 8's Rumored $1,000 Price
I think Apple should manufacture their own, instead of relying to other companies to do it