Apple Seeks Supply Chain Diversification, Reduces Samsung Panel Share

[Asia Economy Reporter Eunmo Koo] Apple appears to be reducing the proportion of Samsung Display's organic light-emitting diode (OLED) panels used in iPhones.

On the 21st (local time), IT specialized media SamMobile reported that Apple is diversifying its OLED panel supply chain and will reduce the share of Samsung Display's panels in the process. Apple's reduction of Samsung Display's share is interpreted as a strategy to alleviate concerns about supply shortages and to increase bargaining power through supply chain diversification.

According to SamMobile, last year Samsung Display accounted for 78% of the OLED panels used in all iPhones. As Samsung Display leads the industry and holds a dominant position in this field, many companies, including Apple, have used Samsung Display's OLED panels in their smartphones.

However, it is expected that this trend will change this year. This is because the yield rates of Samsung Display's competing manufacturers are improving, and Apple also feels the need to diversify its supply chain.

SamMobile forecasted that this year Apple will source about 65% of its panel demand from Samsung Display. This is a decrease of more than 10 percentage points compared to last year. Among the 169 million panels Apple demands this year, it is expected to receive 110 million from Samsung Display, 50 million from LG Display, and 9 million from China's BOE.

As a result, LG Display's market share is expected to increase from 21% last year to 29% this year. In terms of volume, it is expected to double from 25 million panels last year to about 50 million panels this year.

This content was produced with the assistance of AI translation services.