There is no doubt that a major shift has occurred in the sphere of tech industry when Samsung demands 3 billion from Apple for the production of OLED screens. This deal is aimed at showing the continued synergies between two of the biggest technology companies of the world.
Samsung is the biggest producer of active-matrix organic light-emitting diode (AMOLED) displays and has been Apple’s first choice for the screens on its iPhone devices as well as its Apple Watch smart wearable. The $3 billion investment that it is seeking will be used to expand its production capacity so as to compensate for the increase in the number of its customers who are keen on purchasing Apple’s devices which are incorporated with OLED displays.
OLED is known to be a better color technology and boasts better contrast levels and power consumption rates than LCD screens. It is interesting to note that despite the recent announcement by Apple to use OLED technology across its entire lineup, it clearly demonstrates the impact that this technology can have on the user’s perspective on quality.
This includes a huge financial demand which is essential to the high-level technological processes necessary to manufacture OLED screens. the funds would probably be devoted to improving facilities and technologies used to manufacture the products as well as make sure that Samsung has access to the materials required to pursue its current and desired levels of quality and production.
The deal also shows some of the complex supply chain links in the tech product sector. Apple and Samsung are currently great rivals in the mobile phone segment but at the same time they depend on each other’s success. Samsung suffer from that Apple uses Samsung’s display technology but that the firm provides crucial input that gives Apple a boost in profits.
If this deal that is worth $3 billion gets approved then it will increase further collaboration between the two companies to make sure that Apple can provide devices with display technologies that are the best possible. The combination of these two companies is essential since both firms aim to remain dominant players in a rapidly growing industry.
