The iPhone 16 series is slated for a September announcement, and preparations are in full swing. Mass production of display panels has commenced, with Apple tapping its primary suppliers, Samsung Display and LG Display, to manufacture OLED panels for the new iPhones.
Apple’s Bullish Outlook
Reports indicate that Apple has ordered a whopping 123 million display units, considerably surpassing the projected 90 million iPhone 16 shipments for the year. This substantial overorder of about 30% underscores Apple’s optimistic projections for the new models’ market success.
Supplier Breakdown and Benefits
Samsung Display is shouldering the bulk of the production, tasked with manufacturing 80 million units, while LG Display will contribute 43 million panels. This surge in order volume is poised to bolster both companies’ financial performance in the second half of 2024.
Anticipation for Apple Intelligence Fuels Demand
Industry insiders attribute the larger-than-usual panel orders to the buzz surrounding Apple Intelligence, the company’s forthcoming suite of AI features, which is expected to significantly drive demand for the iPhone 16 lineup.
LG Display’s Rising Stature
ETNews suggests that LG Display stands to gain the most from this year’s production cycle. The company’s share of Apple’s display orders has grown by approximately 10 million units compared to last year, representing over 30% of the total supply. Moreover, this is the first instance where LG has adhered to its production timeline without delays, a factor that could further solidify its relationship with Apple.
Samsung’s Focus on Premium Models
While Samsung’s overall unit numbers haven’t seen a dramatic increase, the company is responsible for a larger proportion of displays for the high-end iPhone 16 Pro and Pro Max models. These premium panels, constituting about 60% of Samsung’s Apple-bound production, are anticipated to drive revenue growth for the Korean display giant.
Challenges for BOE
In contrast to the positive outlook for Samsung and LG, Chinese display manufacturer BOE is reportedly encountering hurdles in securing approval to supply panels for the iPhone 16 series. Consequently, BOE may not participate in this generation’s production cycle.
Production On Track for September Launch
The commencement of display production aligns with the expected September launch of the iPhone 16 series, despite rumors of delays affecting Apple’s AI feature suite.
Add Comment