Apr 25, 2017: With Apple deciding to shift to OLED for its iPhone, Morgan Stanley has upped its forecast of the displays used on that phone by 2X.
With iPhone 8 having an OLED display, it prompted Morgan Stanley to revise its forecast because of a “higher than expected iPhone 7 Plus mix” and better “supply chain clarity” on OLED display supply to Apple, the investment bank said in a research note to investors.
“Back in November 2016, our checks pointed to 50 million OLED panel supply to Apple but the range has expanded to 50-100 million,” stated Morgan Stanley.
This means half of the upcoming iPhone model mix will be OLED. “With an expected (second half 2017) total iPhone production plan of 100-110M, this suggests OLED could be closer to 50% mix, versus our prior conservative assumption of 33%,” Morgan Stanley said.
“Our analysis assumes upgrade rates (shipments as a % of two-year old “upgradeable” iPhones) remain at trough levels as the market matures,” Morgan Stanley said. “But we see upside potential if the upgrade cycle shortens temporarily on the strength of promised new features, such as more power efficient OLED display, wireless charging, 3D sensors, and a new curved form factor.” Morgan Stanley continues to see most of the growth from China, followed by Asia Pacific Japan and Europe, the Middle East and Africa.