Apple is in a sweet spot at the moment following the first month of sales of the iPhone 11 family. Analysts and investors have seen Apple’s stock price rise on strong numbers as Tim Cook’s latest iteration reaches the geekerati.
But it’s not just Tim Cook and his team that are the winners. Over in South Korea, Samsung will be happy with the increased sales of its biggest visible competitor.
Thanks to the reported increased demand for the iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max, Samsung Display has seen Apple increase its order for OLED display panels. The new, larger orders have been reported by The Investor in South Korea:
In the third quarter, ending September, the display firm supplied 22.2 million units of 5.85-inch and 6.46-inch panels for Apple’s iPhones –3.9 million in July, 8.4 million in August, and 9.9 million in September. The supply volume in September, in particular, is 40 percent higher than the initially planned 6.9 million units, the report said.
In October and November, the display maker is forecast to provide 9.8 million and 5 million units, respectively. Depending on the supply volume in December, the number of panels given to Apple this year will likely reach 40-50 million.
Although Samsung’s mobile division is in competition with Apple at the premium end of the smartphone market (and the Galaxy S handsets are still widely seen as the iPhone’s chief rival), Samsung’s display division supplies both smartphone brands with their display. That offers Samsung an upside on each side of the market share see-saw.
It also gives the South Korean company an opportunity to understand its chief competitor that is not available to the other Android manufacturers.
The latter is something that Apple has to live with. Even though Cook has alternative suppliers for the iPhone’s screen technology (notably BOE, LG Display and Sharp), Samsung Display supplies over ninety percent of the OLED panels that make their way into the iPhone supply chain. And it looks like that’s not going to change in the near future.
So congratulations to Apple on the first four weeks of the iPhone 11 – here’s hoping you can maintain this pace throughout the rest of the quarter – and congratulations to Samsung on ensuring the win-win outcome by backing both smartphone flagships.