New iPhone X Plus/ iPhone 11 Expected To Be Cheaper After Apple Requires Samsung To Reduce OLED Panels Price
The upcoming iPhone X Plus/ iPhone 11 are expected to be cheaper after Apple had reportedly required Samsung to reduce the price it pays for its OLED panels. Apple is using the OLED displays for its present and next-generation iPhone X models. Sources said that Apple wants the OLED displays from the South Korean tech giant to be sold at $100 from $110 price level or a 9.1 percent cut.
According to the DigiTimes report, Apple first negotiated for the price reduction. It was reported afterward that Apple had, in fact, made the new price of OLED displays a requirement.
The reported enforced requirement from Apple to Samsung is partly due to its plan to diversify its supply chain for OLED panels. It was reported that Apple is also eyeing to buy OLED displays from LG – a move that would greatly enhance competition among OLED suppliers in order to corner multi-million orders.
Apple is reportedly set to purchase some 100 million OLED panels from Samsung this year. Of the 100 million to be purchased, the 25 million of it will be used for the present iPhone X models while the rest will be used for the new iPhone X Plus/ iPhone 11 to be launched in 2018. Apple purchased from Samsung 50 million OLED panels in 2017.
The expected reduction of price for OLED panels will substantially reduce the cost of production for iPhone X. This will further benefit the end users in terms of pricing. Analysts believed, based on the reported pricing requirement for OLED display, the new iPhone X Plus/ iPhone 11 will be sold at $899. Present iPhone X models prices start at $999.
In general, it is widely expected that prices of other smartphone OLED displays will decrease this year. The precipitate drop is likely to happen when OLED panels producers in China will decide to drop the prices to keep their present production outputs.
Apple will be the biggest winner of the soon-to-be-expected reduced OLED panels price. So, the price drop negotiation will certainly push through.