Apple may launch the expected iPhone 8 in two different sizes

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It is rumored that Apple has agreed to pay an advance of $2.7 billion to LG to secure an entire production line of OLED panels for its iPhones from 2019. To meet Apple's demands, Samsung's production capacity for the screens spiked from 30,000 to 45,000 panels per month a year ago to 105,000 on Friday.

Reports of Google investing Dollars 900 million in LG's OLED production for its first OLED smartphone have also surfaced earlier.

Kuo in his report has pointed out several factors that indicate that Apple will join hands with LG to get supplies of OLED screens for its future products in 2018. Out of this production capacity, 15,000 panels are made for Apple. An entirely separate (and much bigger) production line will also allegedly be dedicated to a number Chinese manufacturers. It completed production lines for Apple and is going to operate them on full scale during sometime this month. Apple sells about 200 million iPhones per year.

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As the report explains, assuming Samsung could produce panels at maximum capacity and 100 percent yield, it would be enough to produce around 124 million 6-inch panels and 130 million 5.8-inch panels in a single year.

However it is heard that yield for panels that Apple requested is low due to high degree of technical difficulty.

If Samsung Display operates its lines at an operation rate of 100% with 60% yield, it is able to produce about 75 million 6-inch panels and 79 million 5.8-inch panels respectively. However, as Apple will ask to ramp up OLED production in the coming months, Samsung has invested significantly into its production facilities to bring the 45,000 figure to 105,000 panels a month by the end of the year, and even seemingly made a decision to build an entirely new factory just for iPhones. In terms of bargaining power for the new iPhone 8 the display production has been hard. In addition, a L7-1 line is being converted from LCD to 6th generation flexible OLED and is said to be operational from 4Q 2017.

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