The great business rivalry between Samsung Electronics Co Ltd. (KRX:005930) and Apple Inc. (NASDAQ:AAPL) is not hidden from anyone else. In spite of that, both the companies are always open to exploring business synergies that could result in a win-win situation for both of them. Samsung is the largest supplier of iPhone display to Apple and now Samsung is reportedly about to help Apple in making the iPhone even thinner and lighter in future.
How is it going to do it? Let us look at the news in detail.
The present-day iPhones usually come with thin touchscreen panels overlayed on their OLED or LED display panels. However, Samsung has come up with a technology to do away with the need for a support layer for the touch panel. This technology is called Y-OCTA (Youm On-Cell Touch AMOLED) technology. What this technology does is that it integrates the touch sensors into the display panel provided for the phone. It is placed above the flexible OLED panel but below the polarizer. Due to the removal of the support layers, not only will the phone feel thinner, but also lighter.
This technology has its added perks as well, making it better than the standard technology on hand. For starters, the touchscreen has been made even more sensitive by Samsung so as to cater to Apple’s demands. And if that was not all, making a Y-OCTA screen is 30% less costly than its standard counterpart.
The Y-OCTA technology is supposed to debut in the iPhones from 2019. A deal regarding the same was signed today, on the 13th of December, 2018.
The Samsung-Apple relationship
It is no secret that despite their rivalry in the smartphone market, Samsung does provide Apple with parts to make its iPhones. The most prominent among them being the OLED screens of the iPhones. It was the official OLED screen provider for the discontinued iPhone X last year. Even now it is the official screen provider for the iPhone XS and XS Max.
However, it is looking like things are going to change. It has earlier been reported that LG has cleared all the quality tests designed by Apple, with them being able to supply OLED screens for the Apple iPhones in the future. This puts Apple in a fix, as Samsung has been the sole supplier of the OLED screens for some time now. But this definitely does provide a boost for the OLED division of LG as they scored a client as esteemed as that of Apple.
On the other hand, this could have spelt bad news for Samsung as well. Having a client like Apple for such a long time could do no harm to its income or reputation. However, the emergence of a competitor means that they won’t be in as strong a position regarding negotiations as they used to be.
Apple the ultimate winner
All this competition spells only good news for Apple as they now have leverage during negotiations. This will help them get the best price for themselves. And if you get to have the iPhones thinner and lighter in the process, I don’t think there is too much scope to complain either.