iPhone 11 is popular, Samsung Display OLED supply increased by 10%

iPhone 11 sales exceeded expectations, and Samsung Display's OLED (organic light-emitting diode) panel supply was 10% higher than originally planned.

On the 10th of last month, Apple released the iPhone 11 equipped with LCD (liquid crystal panel), and the iPhone 11 Pro and iPhone 11 Pro Max equipped with OLED panels. Samsung Display supplies about 90% of the OLED panels, while the LCD panels are supplied by Japan Display (JDI) and LG Display.

According to the Korean media JoongAng Ilbo, Samsung Display supplied Apple with about 37 million OLED panels between July and November, about 10% higher than the original plan (33.6 million). It is generally analyzed that this is due to the sales of iPhone 11 in the Chinese circle, Europe and other places exceeding expectations, which is completely different from the sluggish sales of the previous generation iPhone XS.

Moreover, the timing of Samsung Display's increase in OLED panel production coincides with the timing of Apple's supply chain increase in Japan and Taiwan (around the end of last month). The Nikkei reported recently that after Apple started selling the iPhone 11 series last month, it asked Foxconn and Japanese suppliers to increase production of 7 to 8 million iPhone 11 series phones, 10% higher than the original production (about 70 million units).

The JoongAng Ilbo also pointed out that Samsung Display and LG Display are suffering from the deterioration of LCD panel profitability. If iPhone 11 achieves high sales, it will be expected to improve the profit structure of the two companies. Although Apple has strict quality requirements for the supply chain, it can also provide lucrative profits if the supply is smooth.