Report: Apple to build its own OLED panels

A new spin on those reports of OLED panel shortfalls?

From a DigiTimes report posted Monday:

Apple has purchased chemical vapor deposition (CVD) machines from Korea-based Sunic System to build a 2.5G OLED panel line to develop related technology and products in Taiwan, according to a Korea-based ET News report.

Apple is eagerly developing its own OLED technology in order to reduce its reliance on Samsung Electronics for the supply of OLED panels, while enabling it for product differentiation, said the report.

Note: It's not clear from this account how many CVD machines Apple has purchased or when it took delivery. This could put a new spin on thousands (literally) of published reports that Apple is facing OLED panel shortfalls.

4 Comments

  1. George Row said:
    It is not necessarily Apple themselves who will be using this production line. They have a track record of equipping factories for their suppliers to use.

    1
    July 24, 2017
  2. Fred Stein said:
    Hm. More fun speculations.
    First some factoids. Per IHS the iPhone 7 modem costs $34, the Display $43 out of a total BOM cost of $227, i.e. 33% of cost. And OLED costs will be higher.
    This OLED investment, plus Apple IP suits with Qualcomm seems to address cost, which makes sense. Both make more sense with some speculation.
    Just cost: Huawei may be Apple’s biggest threat, and not just in China, but in developing nations, where Huawei is strong. (They’re barely noticed here in the US.) Huawei competes on price which is very important in developing markets.
    Bigger picture (or smaller actually). OLED allows more screen and pixel per phone size. After success with big pricey Pro iPhones, Apple may take OLED down, in price and size over the next few years.

    0
    July 24, 2017
    • David Emery said:
      >Apple may take OLED down, in price and size
      I’m sure that’s a core part of their strategy. Like “buy equipment for suppliers,” this seems to be part of Tim Cook’s expertise at (profitably) scaling the supply chain.

      0
      July 26, 2017

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