With each new generation, the production of iPhones is accompanied by intense negotiations with subcontractors. And Apple is not short of it. The screen represents an essential part of the smartphone, which gives rise to a battle between the few suppliers capable of supplying them in large enough quantities.
Historically, Samsung Display provides a large part of the production, leaving the rest to LG Display, Sharp, Japan Display and the Chinese BOE. The South Korean giant quickly specialized in Oled panels for smartphones, while LG remains the expert in the field of Oled screens for televisions (which it also supplies to Samsung).
Both are however capable of manufacturing small Oled LTPO screens, which allow the image refresh rate to be adapted dynamically. Models that are found most of the time on the most high-end mobiles. According to a report from The Elec site, LG would like to move up a gear, however no precise figures have been communicated for the moment.
Break the monopoly
Last year, Samsung Display assembled almost 70% of the panels for iPhone 14. This was equivalent to approximately 80 million units out of the 120 million screens manufactured for the four versions of the iPhone 14. Indeed, LG struggled to maintain a good enough rate of return, and couldn’t provide as many screens as needed. This played in favor of its competitor, which was able to establish its monopoly, and take advantage of the emergency to better negotiate with Apple.
The Cupertino company therefore welcomes LG’s desire to recover market share on the Pro models, which are a resounding success. It remains to be seen what the order of magnitude will be. But Samsung Display has been warned: it will have to adapt its logistics accordingly in the future.