Apple banks on Samsungs OLED flat panel display industry for new iPhone

Samsung Display Co. is making headlines again. This flat panel manufacturer under the name “Samsung Group” has entered into an agreement with Apple Inc. to supply organic light -emitting diode (or OLED). Echoing their sentiments, the company officials revealed that it will start serving the requirements beginning in 2017. Research analysts at “Prof Research Reports” weighing up on the growth rate, opportunities, demand and supply among others in the “Market Research Report on Global and Chinese OLED Flat Panel Display Industry 2009-2019” highlight that under this deal, Samsung Display is expected to supply about 100 M units of panels every year. 

These flat panels measure 5.5 inch with an estimated value of (US$2.59 billion). However, the Samsung Electronics Co. affiliate has declined to reveal further information. Company sources indicate that their privacy policy restricts them from confirming the details of this deal. Industry experts eyeing the progress of Samsung Display Co. confirm both companies have decided to maintained the terms of the agreement for a period of three years. Apple has already been using Samsung’s application processors (or AP) for its iPhones. These application processors are popular as the brains of smartphones. They play a vital part in initializing the operating systems (OS) and apps of mobile phones.

This deal is making winds for the fact that two big giants are also involved in a patient war for the past 5 years. Research analysts at Prof Research Reports are confident that the recent deal may indicate the extension of a business association between the two companies. Samsung Display reserved approximately 23% the total world shipment of flat displays in 2015 for products smaller than nine inches. The company was followed by Japan Display Inc. and LG Display Inc., which occupied 16 percent and 14 percent respectively. Early rumors indicated that Apple will begin embracing OLED flat displays in 2018. But, recent information shows that it has pushed up its timeline. Apple is aiming to launch its first ever iPhone with organic light-emitting diode displays next year.

Industry watchers confirm that iPhone would witness a major design innovation, which if achieved, would observe Apple separating from its conventional two – year development cycle that consists of major re-engineering followed by small yet important internal update. This reveals 2016 iPhone will soon be receiving a facelift, while 2017 iPhone will exhibit similar designs launched in2016. To serve the growing needs for OLED panel, Samsung Display is likely to construct an additional production unit completely dedicated to manufacturing these panels for Apple at A3 facility located in Asan, South Chungcheong Province.