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Report: Apple reaches $2.6 billion agreement for Samsung to supply OLED panels starting in 2017

According to a new report from the Korean Herald, Samsung and Apple have reached a deal in which Samsung will supply around 100 million OLED display units to Apple beginning in 2017. The report comes as several other sources have stated that Apple plans to make the switch to OLED panels beginning next year.

As far as details go, the agreement between Apple and Samsung is reportedly worth around $2.59 billion and the two companies are expected to maintain the agreement for at least three years. Furthermore, the agreement is for 100 million 5.5-inch OLED displays. The report makes no mention of Samsung providing any 4.7-inch panels.

Under the deal, Samsung Display will supply around 100 million units of 5.5-inch panels annually, with the value being estimated at 3 trillion won ($2.59 billion). Samsung Display, an affiliate of Samsung Electronics Co., declined to confirm the deal, citing its privacy policy.

Samsung Display declined to confirm the deal, citing its privacy policy.

Today’s report comes as rumors regarding Apple’s future display plans have been picking up steam. A report last month stated that Apple would switch to OLED panels in the 5.5-inch iPhone next. While other reports have claimed Apple was aiming to use OLED technology by 2018 or 2019. With today’s report on a deal between Apple and Samsung, however, it’s looking more and more likely that we’ll see the first OLED iPhones in 2017, although nothing is for certain until Apple officially makes an announcement.

Last month, KGI analyst Ming-Chi Kuo said that Apple would entirely revamp its iPhone lineup in 2017. Kuo said that Apple would switch to a device with a “completely new form factor design” with more narrow bezels and a “more comfortably grip” and an all-glass design like the iPhone 4/4s. The report also noted that Apple was considering a 5.8-inch model, as well as wireless charging.

The Apple Watch features an OLED display, which allows for much deeper blacks and improved viewing in bright sunlight conditions.

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Comments

  1. PhilBoogie - 8 years ago

    At 5.5 inch that is going to be one heck of a large Apple Watch. 2017 is going to be a BIG year¡

  2. taoprophet420 - 8 years ago

    Kuo said the OLED model next year would be 5.8″ Based on supply of the 5.8″ OLED displays would depend of Apple would still make 5.5″ led models. If enough displays could be sourced Apple would only ship 5.8″ OLED models and 4.7″ led models.

    • o0smoothies0o - 8 years ago

      No. It will be 5.8″ iPhone Plus and 5″ iPhone. Anything else and Apple is completely moronic.

      They will reduce the bezels and increase the screen sizes and keep the physical sizes the same or very close.

      • lellis2k - 8 years ago

        So you’re disagreeing with the report? It says 5.5″ has been ordered, Apple don’t upgrade everything at once, they do a few bits every iteration, OLED 2017, 5.8 with reduced bezels maybe 2019.

      • vanilla199 - 8 years ago

        lellis2k, the increase in screen size will come FROM the reduction in bezels. The goal is to not change the physical size of the device. The likely possibility is they will go for a curvled display (similar to the GS7 Edge) which allows for a small increase in screen size without physically getting too much bigger.

  3. cdm283813 - 8 years ago

    So the “S” in iPhone 7S will stand for Samsung! Or what about “Super AMOLED”?

    But jokes aside current LCD tech has reached it’s limit. My S7 display just kills my 6S in the display department. It’s hard owning 2 flagships that are so different yet so good. Can’t wait until the iPhone 7 plus comes out this fall to replace my 6S. Every 6 months a new phone; got to love it.

    • taoprophet420 - 8 years ago

      The LCD display in the new iPad Pro might be at its peak, but this is not true yet of iPhones. OLED has finally matured enough for Apple to make the switch. Apple could Make a move to micro-LED when the yield rates increase for the them. Micro-LED like OLED does not require backlights and has the advantage of being much brighter and have higher color gamut then OLED displays have.

      • cdm283813 - 8 years ago

        From wikipedia, “As of 2016, no mLED displays have yet been mass produced and commercialized.”

        I highly doubt Apple can mass produce millions of these in time for iPhone 7 and the cost factor has to be much higher vs the proven and matured OLED. Samsung right now is the King of the mobile display since early last year. Not saying that the iPhone is terrible; just that Samsung is better and they had a few years to really master it.
        There is an article released today on Droid-life that gives a history of some of the first OLED displays. I had a Verizon Nexus back in the day and that display was horrible compared to today.

      • taoprophet420 - 8 years ago

        Neither OLED or micro-LED will be in the iPhone 7. I think Apple will release OLED only in whatever they call next yeas 5.5 or 5.8″ model.

        I think OLED displays will only be used until Apple can get the yield rate needed for micro-LED.Foxconn purchasing Sharp will have a major impact on what screen tech Apple will pursue. With Apple now having a display testing facility they can develop the technology then have Sharp, Japan Display or Samsung produce the screens.

      • o0smoothies0o - 8 years ago

        If Apple releases OLED in the Plus before the regular they will infuriate the majority of their customers. They aren’t that stupid. I hope.

    • o0smoothies0o - 8 years ago

      By the way there will never be a new 5.5″ AND 5.8″ model. The 5.5″ will be replaced by the 5.8″ with reduced bezels to fit the same size as the 5.5″. Just as the 5″ will replace the 4.7″ and maybe a 4.3″ will replace the 4″.

      • taoprophet420 - 8 years ago

        I had a reply for you here, but thanks to WordPress it didn’t post. I wrote a much shorter reply to your other post below.

      • vanilla199 - 8 years ago

        Where did you hear about the 5″ iPhone? I thought the only one with credible display change rumors has been the iPhone 7+ with 5.5″ to 5.8″.

  4. Jake Becker - 8 years ago

    Annnnnnd people who will now wait one more year to upgrade..I hope there’s some exciting stuff at WWDC this year.

  5. Greg Kaplan (@kaplag) - 8 years ago

    this picture just reminds me how ugly those phones are. I still can’t believe apple sells that shit.

    • PhilBoogie - 8 years ago

      Apple doesn’t sell phones; they sell an experience, called iOS. This results in a 90+% user satisfaction, netting them 90+% of smartphone profits. So they kinda *know their shit*.

      • Greg Kaplan (@kaplag) - 8 years ago

        I have a 90% satisfaction rating when I take a shit too. Want to see a picture?

      • Greg Kaplan (@kaplag) - 8 years ago

        Sorry that was crude. I was in a bad mood last night and your comment rubbed me the wrong way. I get Apple is successful and those lines aren’t going to make or break them. But that doesn’t mean they aren’t ugly. According to the rumors here, even Apple wants to change them. It’s just not good design.

  6. kpom1 - 8 years ago

    Sounds good. So we’ll get True Tone in 2016 and AMOLED in 2017.

  7. o0smoothies0o - 8 years ago

    All I can say is if they go OLED in the Plus and hold off a year for the regular then they should be shut down for stupidity that isn’t matched elsewhere on the planet and in the entire universe and possibly multiverse.

    If they do a radical change in 2017 it will be in celebration and marketing the fact that it’s the 10th anniversary of the iPhone. It won’t be iPhone 7S, not with major changes, especially in the display quality which they’ve only changed on redesign years.

    • taoprophet420 - 8 years ago

      Even with Apple’s pull with suppliers it is very unlikely they could secure 90-100 million OLED displays for 4.7″ or 5.5″ or 5″ and 5.8″ models. The release is going to be staggered just like Apple staggering the iPad Pro releases.

      We can think it’s an ignorant move by Apple, but the truth is 100 million OLED displays next year is likely undoable. The question is if Apple can only secure enough displays for one screen size next year should they release it or wit a year where they can do multiple sizes.

      • o0smoothies0o - 8 years ago

        Wait. I fully understand what you’re saying and I assumed you understood I knew that. My point is that sorry, but the OLED display simply cannot be given to one phone before the other, it’s too big of a feature and people will be understandably pissed. If Apple is stupid enough to do that then I really do worry about their future.

        So the answer is they should wait until they have the supply for both, which is frankly what they should be doing with the dual cameras but clearly they are not.

        This fall we get to see if they are among the stupidest beings in the universe when they release the Apple Watch 2. If it has a FaceTime camera, the answer is unequivocally, yes. My most wanted feature of the Apple Watch 2 is for it not to have a FaceTime camera, because if it does then the company that makes the best products is now making garbage insanely unintelligent choices.

      • taoprophet420 - 8 years ago

        I wrote a long reply, but WordPress ate it. I need to remember to come to the article on 9to5Mac or risk my post never posting via notifications(

    • vanilla199 - 8 years ago

      $5 says they go OLED for the iPhone 7+ but not for the iPhone 7. Think about the marketing, to me, it actually seems like a likely thing for them to do. If absolutely necessary, they can explain it by saying the iPhone 7 gets increased contrast and saturation of 15-20%, while the iPhone 7+ has increased contrast and saturation of 40-50%! It’s just very very easy for apple to make that happen (despite how it pisses people off), and it seems likely because 1) They’ve already started doing it OIS (and likely dual camera) and 2) The supply chain rumors state they will not have enough supply for both the 7 and 7+, BUT that apple rushed the supply to have enough for 2017 instead of just waiting till 2018. Almost all but confirmed in my eyes.

      • vanilla199 - 8 years ago

        Also let’s not forget how apple is going for pushing higher margin now as opposed to their previous existing model; i.e. iPad Pro 9.7, iPhone +, arguably 5K iMac, and rMBP.

  8. So now to the hard part … to wait for 7S or go for 7 …

    • Avieshek (@avieshek) - 8 years ago

      Ofcourse wait, it’s a 10-year anniversary for Apple, it would be more than just OLED panels; biometric-sensors, new-glass design, Imagination’s new GPU, TSMC’s 10-nm fabrication, possibility of LPDDR5 RAM as Industry’s first, Bluetooth 4.3, Next Gen 3D-Touch, USB 3.1 for their Lightning Port etc..

      • WTF there is no such thing as LPDDR5 ram. Type of ram cannot be decided by Apple.It is created ans standardised by JEDEC.

      • Avieshek (@avieshek) - 8 years ago

        It hasn’t been manufactured yet ‘coz the standard has been released last September and Samsung is already on it with 10-nm fabrication.

      • Avieshek (@avieshek) - 8 years ago

        *December not September

  9. Atlas (@Metascover) - 8 years ago

    The OLED iPhone will be deep black, it’s obvious.

  10. Ilko Sarafski - 8 years ago

    OK, I am happy that I jumped from my super old 4 to the 6S. Now, this gives me enough room to move around, meaning I can wait until 2017. I am not sure if Apple is superstitious or anything but for sure it will be an interesting year. Because, okay, iPhone will be 10 but what it will mean – hey guys, we did super awesome iPhone this year. But don’t expect another great product next? It will be some kind of “anniversary” thing but I guess not as big as the majority of people expects. But with its internal specs + iOS 9 (and 10 and so on) “featherweightness”, I am pretty sure that many people will stick even longer with their 6S.

  11. scapegoat81 - 8 years ago

    I will be pissed if they fragment the two iPhone models even more. Not going OLED on the 4.7″ would be a huge mistake.

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Avatar for Chance Miller Chance Miller

Chance is an editor for the entire 9to5 network and covers the latest Apple news for 9to5Mac.

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