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After Apple, Samsung will be the biggest beneficiary of the iPhone X

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Last updated: September 13th, 2017 at 09:14 UTC+02:00

Apple unveiled its new flagship smartphone called the iPhone X yesterday. The company says that this device represents the “future of the smartphone.” While that can be debated, Samsung actually stands to gain a lot if the iPhone X ends up performing well in the market.

The iPhone X is Apple’s first smartphone with an OLED display. The company has branded it as “Super Retina” and while it made no mention of this during the keynote, it’s sourcing the OLED panel from Samsung.

Apple actually has no choice in the matter. Samsung is the only supplier that can produce high-quality OLED panels that fit Apple’s requirements. It has an 89 percent share in the OLED display market. Apple can only source OLED panels for its new flagship smartphone from its biggest rival.

A recent report claimed that Samsung charges anywhere from $120-$130 for an OLED display panel. It’s actually in a strong enough position to dictate pricing for the display. Apple is expected to sell millions of units of the iPhone X which means that Samsung’s display business will end up making a ton of money in the process.

Apple may have to stick with Samsung for a couple of years because there’s no other supplier that can meet its requirements at this point in time. Japan Display, which supplies more than half of the LCD panels for iPhones, may not be able to mass produce OLED displays until 2019.

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