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In 2020 iPhone Will Adopt Chinese OLED Screen To Reduce Costs

In 2020 iPhone Will Adopt Chinese OLED Screen To Reduce Costs

Published by Touch Wireless on Oct 28th 2019

Background

Apple’s latest flagship iPhone will adopt Samsung’s OLED screen . It is one of the most expensive parts of iPhone. According to the latest news, Apple will use the OLED screen on the three new iPhones in 2020 to bid farewell to the LCD screen. And Apple is looking for a more cost-effective supplier option, such as Chinese suppliers. It will reduce the cost of the entry-level iPhone in 2020 and open up space for other high-end models.

Chinese OLED Screen Is In The Swim

According to the Nikkei Asian Review, Chinese panel maker BOE Technology has a clear intention for this project. BOE is preparing to cooperate with Apple to start producing OLED screen. It also challenges the status of Korean suppliers. Samsung currently has more than 90% of the global high-end screen market, while rival LG Display is lagging behind.

The cost price of Samsung OLED screens on iPhone XS and iPhone XS Max is about $110 and $120, respectively. Due to high production costs (the production cost of OLED devices is about twice that of LCD) and the relative lack of competition, these screens have been very expensive. BOE’s OLED screen is relatively affordable. It has a local conveyor chain and investment advantage. Secondly, thanks to government subsidies, BOE’s OLED screen is about 20% cheaper than Samsung in the same size. In the case of smaller size, it may be cheaper.

Apple chooses supplies for their qualities. Due to differences in color reproduction between LG’s screens, Apple prefers to use Samsung OLED screens on iPhone X and iPhone XS. This year, Samsung may launch a “Pro” quality iPhone display with faster refresh rate, higher brightness and better color performance. It will further widen the gap between high-end and low-end machines on the screen. The relatively low-cost OLED screen became a component of the iPhone in 2020.

BOE has already provided LCD screens for MacBooks and iPads. However, due to cost considerations, neither product has an OLED screen. The report shows that BOE screens will find their way as a replacement panel for the old iPhone. In addition, BOE is also producing flexible OLED screens for Huawei and Apple. Apple is testing for use in future products.

iPhone In 2020 Is Unlikely To Cut Prices

It doesn’t necessarily mean that the iPhone will eventually cut prices. As Apple plans to introduce Qualcomm’s 5G baseband chips into the iPhone line by 2020. It will increase the cost of per device. Therefore, it is entirely possible for Apple to take advantage of the saved screen cost to offset the impact of rising chip and battery prices on the new low-end devices. So its price will remain roughly unchanged next year.