Apple Adoption of OLED Might be Limited in iPhone 8

OLED displays might not be found on all iPhone 8 that is rumored to be launched in September 2017, according to a Barron’s blog article.

Financial institute Gabelli and Co.’s Hendi Susanto kept OLED manufacturer Universal Display’s rating on hold, after discussing with the company’s head of investment relations, Darice Liu, in New York yesterday.

Part of the discussions involved speculations about Apple’s OLED usage in its next generation iPhone 8 to be revealed in September 2017.

Susanto implied through his note that the OLED in the iPhone would be a kind of partial or interim approach by Apple before it would become widely applied.

“We believe that Apple can adopt OLED displays sooner rather than later by pursuing a partial adoption and incorporating it in a specialized edition of a new iPhone version,” hd wrote. “This will alleviate the needs of huge supply capacity and accelerate OLED display adoption.”

He did not rule out the possibility of Apple waiting to adopt the OLED displays in all new iPhone models.

To back his reasoning, Susanto noted OLED displays manufacturers including Samsung had just started production.

“The market penetration of OLED displays in smartphone is still low and at an early stage. Its current market penetration is still below 300 million units out of 1.3 billion of annual smartphone shipment units,” wrote Susanto.

Samsung noted the pricing for OLED displays is much lower than that of LTPS LCD displays. The Korean company estimates its OLED displays demands exceeded its production capacity in second quarter of 2016, and it will pursue diversification of OLED display sales toward external customers.

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