Apple introduced the iPhone X with an OLED screen last year, which is exclusively supplied by samsung, and the latest reports suggest it is in talks with samsung to lower the price of OLED screens it supplies this year.
Last month, the CEO of samsung's display company held talks with apple executives about the supply price of OLED screens, but the two sides failed to reach an agreement.
At present, apple and samsung are indispensable in terms of OLED screen. In terms of size and quality, only samsung can meet apple's requirements. Apple's huge order of OLED screen is also what samsung display company needs, especially now facing overcapacity.
Apple, which is negotiating with samsung this year to lower the price of OLED screens, also relies on its huge order book.
Samsung's OLED screens, which samsung supplied to apple last year, cost about $110 per screen, or $120 or $130, according to some analysts, accounting for a third of the cost of making the iPhone X, which apple hopes to bring down to about $100 this year.
In the supply side, OLED screen samsung display to apple's iPhone last year X supply 50 million pieces of OLED screen, it is prepared to supply 100 million pieces of this year, accounted for samsung OLED screen this year half of the total output of 200 million pieces, of which 25 million block is for iPhone X, the second half of the remaining 75 million pieces for the launch of the iPhone X subsequent versions.
But weak demand for the iPhone X this year and the fact that other phone makers have temporarily missed samsung's expectations have led to a glut of samsung OLED screen capacity after the iPhone X's launch.
Despite its excess capacity, samsung is preparing to make OLED screens for this year's new iPhone next month, with initial monthly production of 2 million to 3 million units before doubling in June.
Samsung may also have resumed operations at the A3 production line now, which was closed earlier because of excess OLED screen capacity.Foreign media also said in the report that samsung has been considering appropriate reduction of the price of OLED screens for apple to solve the problem of overcapacity.