OLED technology, thanks to its self-illuminating properties, has emerged as a groundbreaking innovation in the display industry. Today, both small-screen mobile phone manufacturers and large-screen TV companies are shifting their focus toward OLEDs. It almost feels like you can't call a flagship device without an OLED screen anymore. With strong support from major brands, the future of OLED looks brighter than ever.
The world is currently facing a shortage of OLED screens, not just for the iPhone X.
However, it's important to mention upfront that all high-quality and large-sized OLED screens today are mostly supplied by two South Korean giants—Samsung and LG.
### Apple iPhone X: The Most Impacted
While the iPhone 8 and 8 Plus performed well this year, their sales didn’t match the hype around last year’s iPhone 4. Many consumers were still eyeing the iPhone X instead. Despite being the most expensive iPhone in history, priced at nearly 10,000 yuan, the iPhone X actually made less profit than the previous generation, the iPhone 7.
The iPhone X's profit is lower than the iPhone 7.
This is mainly due to the fact that the iPhone X was the first model to use an OLED screen, which was exclusively supplied by Samsung. Samsung charged Apple around $150–$160 per screen. If the iPhone X sold more units, Samsung would make more profit. But Apple had no choice but to accept this because only Samsung could meet their requirements. In comparison, the total cost of parts for the iPhone 7 (including the screen) was only $248.
Samsung now dominates the small and medium-sized OLED market.
Apple's dependency on Samsung is unavoidable. Since 2007, Samsung has been mass-producing small OLED panels. When they first introduced OLED screens in 2008, they quickly took control of the mobile market. By 2016, over 385 million OLED panels were used in smartphones, with 93.4% coming from Samsung. This shows how deeply Samsung has embedded itself in the OLED supply chain.
### Domestic Brands Face a Screen Crisis
High-end Chinese phones are struggling with a screen shortage.
With Apple entering the OLED market, demand has surged globally. However, Chinese manufacturers find it difficult to secure OLED panels from Samsung, as Apple has already signed a two-year contract worth $9 billion. Given Samsung's limited production capacity, it's focused on meeting its own needs and Apple's. As a result, domestic brands are forced to turn to LG or rely on smaller quantities from local panel makers—leading to a severe screen shortage for high-end Chinese devices.
This situation highlights the growing challenge for domestic manufacturers who are trying to compete in a market dominated by a few key players.
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