Apple introduced a slew of exclusive upgrades to the iPhone 15 Pro and iPhone 15 Pro Max, which would explain as to why they are in high demand, to the extent that Samsung increased OLED production for the 6.1-inch model for the fourth quarter of this year. According to the latest report, the Korean manufacturer has increased its volume by 5 million units, though it is also stated that the company is charging Apple a higher price compared to LG despite providing the same LTPO panels.
Total OLED shipments for the iPhone 15 Pro could increase by 2 million units if demand remains high
Samsung and LG supply LTPO OLED shipments for both the iPhone 15 Pro and iPhone 15 Pro Max, and according to The Elec, Apple has tasked the bigger manufacturer to fulfill the responsibility of increasing production to meet demand. The report mentions that Samsung supplies OLEDs for the entire iPhone 15 series, suggesting that the company has a vacant capacity that can be increased if demand picks up, which may be the reason why it got tapped by Apple in the first place.
However, Samsung is said to be charging Apple a premium to fulfill those iPhone 15 Pro OLED shipments, likely because LG may not complete the order based on the recommended timeline. With the holiday season right around the corner, it is expected that a significant number of iPhone 15 Pro and iPhone 15 Pro Max activations will happen, so Apple might be willing to sacrifice a little profitability and pay Samsung the extra funds if it means getting the components on time.
It is also predicted that the total OLED volume of the iPhone 15 Pro will increase by 2 million units by the end of this year, with overall shipments of the entire series said to reach 80 million units before the start of 2023. Regardless, Apple’s OLED purchasing volume is in between the 90-100 million range as it prepares for next year or has a contingency in place, just in place demand spikes during the last few weeks of the quarter.
News Source: The Elec