Apple has to pay Samsung for every iPhone Duo it sells under exclusive display deal
Apple (NASDAQ: AAPL) reportedly has to pay Samsung Electronics (KRX: 005930) $250 for every main folding panel fitted inside the iPhone Duo.
Leaker Instant Digital said on Chinese social network Weibo that the supply contract lasts three years. It covers the current Duo and the models Apple releases during that period. Samsung was already in possession of the exclusive screen contract because it was reported that Apple could not find any other manufacturer capable of giving the desired screen.
Apple is now bound to its main competitor in the phone-making industry for the expensive component. LG Display (NYSE: LPL), an important screen supplier for Apple, is not capable of manufacturing the flexible screen.
BOE Technology Group (SZSE: 000725) already sells folding panels to Huawei, but Apple reportedly decided BOEโs version was not good enough for its phone. Samsung was therefore left as the only supplier that met the requirements.
Samsung secures three years of Apple orders as each inner panel costs $250
The display of the Duo is more difficult to produce as compared to the display that is present within the iPhone 18 Pro Max. The production process is quite complex for this reason, and hence, this increases the cost of the display even before it reaches the final assembling stage.
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