Apple has reportedly placed orders for OLED panels with Samsung for use in 70 million handsets this year, sources told Nikkei Asian Review. The large order suggests that Apple expects its new premium iPhone 8 to be launched late 2017 to fly off the shelves.

Demand for the 2017 iPhone, which is expected to feature a major design overhaul with an edge-to-edge display, glass body, and a premium price tag, is expected to be high as it typically is in a year when a new look is unveiled. Apple and Samsung are gearing up to meet demand with the large panel order.

“Apple has ordered 70 million units of OLED panels from Samsung this year, while Samsung is preparing to churn out as many as 95 million for Apple in 2017, in case demand exceeds expectations,” IHS Markit analyst David Hsieh said.

There have also been reports that Samsung shall be spending a whooping $8.9 Billion at expanding its OLED production lines. Apple’s decision to move to OLED technology is likely what motivated Samsung Display to go ahead with this massive investment. Apple still continues to set the tone in the mobile market, and other phone makers are expected to follow its “lead” in the near future. Samsung, however, has been using OLED screens in its Galaxy-branded handsets for years, while Apple pushed LCD technology to its limits in its iPhones.

Samsung is probably looking to keep Apple’s display business in the coming years and provide OLED screens to other companies as well.

Source: Nikkei Asian Review