OLED Display on iPhone X May Reduce Apple’s Profits for Q2 2017

by Habeeb Onawole 0

It’s no news that this year marks 10 years since the first iPhone was released. To celebrate the event, rumor has it that Apple will launch an anniversary edition called the iPhone X which will have an OLED display.

An analyst at Cowen & Company, Timothy Arcuri says the decision to use an OLED display will add about $50 million to the company’s cost for the second quarter. This will in turn reduce profit margins.

iPhone OLED

Sources say that Apple has an agreement with Samsung to be the sole supplier for the 5.8-inch OLED display in the iPhone X. The outcome of that partnership has thrown a spanner in the works of other manufacturers like Huawei, Vivo and OPPO who wish to purchase OLED displays from Samsung. This has led them to form a partnership that will invest in a smaller company that manufactures OLED screens.

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Timothy Acuri also provided hints of what to expect next week when Apple announces its shipments for Q4 2016. According to him, he predicts a total shipment of about 76 million units which is not much different from that of the previous year. Revenue may however be higher due to the large share of the costlier iPhone 7 Plus which he estimates to have shipped 23.5 million units as against the iPhone 7′ 35 million units. Predictions for other products such as the iPhone SE, iPads and Apple watches are 8 million, 13.5 million and 5.4 million units respectively.

For Q2 2017, Mr Acuri predicts iPhone sales entering 50 million units, 10 million iPads, and 5.4 million Apple Watches.