Samsung plans to spend $8.9 billion to expand OLED production in 2017

Samsung is doing well in the business. The South Korean company is now the world’s biggest smartphone manufacturer, selling hundreds of millions of smartphone units worldwide. Besides, Samsung now dominates the mobile OLED industry with more than 90 percent market share.

South Korea-based Company is currently the sole supplier of components for Apple iPhone models. Earlier this year, Samsung reportedly secured a $4.3 billion contract from Apple to supply 60 million OLED panels for future iPhone models.

According to a report, Samsung is planning to spend around $8.9 billion on expanding its OLED production this year. Tech experts say that Samsung’s move aims to meet Apple’s huge demand for OLED panels that will be used for this year’s iPhone models. Besides, Samsung is also investing heavily in setting up new OLED manufacturing plants worldwide and improving its current facilities.  Samsung’s main rival in the OLED market, LG Display is also speeding up its work to secure a deal from Apple to supply millions of OLED panels for future iPhone models.

The upcoming iPhone 8 is expected to be the first iPhone model to feature OLED display, while two standard 4.7 inch and 5.5 inch iPhone 7s/7s Plus models are rumored to use Apple’s traditional LCD displays. Apple has long been rumored to equip all future iPhone models with OLED panels starting 2018. That’s the reason why Samsung is heavily investing in its OLED production segment.

According to sources, Samsung will supply OLED panels for major Chinese smartphone makers who are planning to switch over to OLED displays this year. Therefore, Samsung needs to expand its production to meet this increasing demand.

Samsung has recently introduced its new pair of smartphones, Galaxy S8 and S8 Plus with innovative features including facial scanning, Bixby and infinity display. The new handsets will compete directly with Apple’s iPhone 8 when it launches this September.

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