What is Samsung's connection with Apple iPhone 8?

Scratching your head already? Well, no need to do that as you will be surprised to know that Samsung plays a very crucial role in the much-awaited iPhone 8. Apple's upcoming iPhone is expected to use a newer kind of display technology called OLED instead of LCD. And guess what, who is supplying these displays? It's none other than Apple's arch-rival, Samsung. And Samsung is taking advantage of that by charging a ton of money for those displays.

According to a new report from KGI Securities and obtained by Apple Insider, Samsung is going to be the only supplier of Apple's OLED screens. KGI Securities analyst Ming-Chi Kuo estimates that Apple is paying $45 to $55 for LCD displays in the current iPhones, while Samsung is demanding $120 to $130 per unit. According to the alleged terms of the deal, Samsung Display will supply in the region of 100 million 5.5-inch OLED panels annually, with the value being estimated at $2.59 billion.

Kuo also mentions that Apple "may abandon" its fingerprint recognition scanner called TouchID, as has been forecast for months. "We believe 3D Touch module could be unfavorable for a scan-through performance of under-display fingerprint recognition," Kuo said, "which is one of the main reasons why OLED iPhone may abandon fingerprint recognition."

Despite the high price, Apple will have to buy OLED displays from Samsung. LG also manufactures OLED display screen but Bloomberg reported that Apple will have to wait till 2019 to get LG displays. Also, LG’s current OLED displays are nowhere near as good as Samsung’s displays. Apple currently ships around 200 million iPhones every year.