According to a report cited from Supply Chain sources (Via Digitimes), in order to cut the cost of 2018 OLED iPhone models, Apple is currently negotiating with Samsung Display to reduce the price of OLED screens, down around 9.1 percent from the $110 price point.
Apple’s demand for price cuts is not unexpected, by knowing that the price of OLED screens accounts for about one-third of the total cost of iPhone X. It is generally believed that this is the key reason that iPhone has experienced the unfavorable sales. So Apple is asking Samsung Display to lower the unit price to $100.
Apple is likely to purchase about 100 million OLED screens from Samsung Display in 2018, of which 25 million will be used for the production of the existing iPhone X, and the remaining 75 million will be used for the next-generation OLED models: a 5.8-inch model, and 6.5-inch version.
It appears that Apple will continue to stick to the strategy of adopting OLED screens for iPhone. Once the price is down, RBC analyst Amit Daryanani believes then that the second-generation iPhone X will start at $899, down from $999, which could benefit both Apple and consumers side.
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