It is expected that the release of the iPhone 16 with Apple Intelligence tools can increase the sales of this series compared to the previous generation.
Lunching schedule and Mass Production
According to recent news, Apple will officially introduce the iPhone 16 series in September this year. In contrast, the release of Apple Intelligence has been postponed until October. Now, unofficial reports indicate that Apple has even started mass production of the next-generation iPhone display and doesn't want to wait for AI-based features to be ready.
Corporation with Korean Companies
Recent reports show that Apple has ordered 123 million display panels to Korean tech giants LG and Samsung, before the planned release in September. According to a Korean media claim, Apple has assigned the task of manufacturing the screen of the iPhone 16 series to LG and Samsung companies so that they can deliver a huge amount of orders in the short time left.
Competition between LG & Samsung
Apple has once again chosen to get the screens for its flagship iPhone from two of the top manufacturers of displays, Samsung and LG. With the production of 80 million panels, Samsung has won the greater part of the deal. Samsung's history of producing high-quality screens positions it as the market leader. LG has also signed a contract with Apple to produce 43 million panels.
Mass production and Increased Income
We should mention that experts estimate that iPhone 16 sales will reach only 90 million units this year. As a result, Apple has ordered about 30% additional panels compared to its needs this year. Sources that are related to the display panel production chain in Korea have confirmed that Samsung and LG have begun the process of mass production of Apple's orders. It is expected that both Korean companies will see an increase in their income in the second half of this year with the release of iPhone 16 series. The presence of Apple Intelligence features in iPhone can encourage users to buy the new series more, So maybe this is the reason for the order exceeding Apple's forecast.
LG's Status in Supplying Displays
It seems that LG will benefit the most from the release of the iPhone 16. The volume of Apple's orders to this company has increased by 10 million units compared to last year. Although Samsung still received twice as many orders as LG, But a 30% share for LG in iPhone screen production is not so small. For the first time LG has been able to complete the production process of display panels without delay, which can increase Apple's trust in this company in the future. The delay in the production of OLED displays in 2022 and 2023 by LG caused Samsung to acquire a large share of the Korean competitor's market.
Samsung Status in Supplying Displays
The number of Samsung orders has not increased much compared to last year; But this company still has a major share of the production of iPhone screens. It is also worth mentioning that Samsung has a large share of Pro and Pro Max panel production, which earns this company more revenue than normal models.
Conclusion
Samsung and LG are producing huge quantities of iPhone 16 screens and this shows that Apple is getting ready for a successful market launch. The company expects higher sales because of the integration of AI-based features. All of these companies will benefit from this corporation. With the introduction of the iPhone 16 series, Apple's big orders to these Korean manufacturers highlight Apple's trust in their abilities and set both companies for future success.