OLED Display Chip Shortage Could Impact Apple’s iPhone Production

Samsung is currently struggling to produce OLED displays because of a global chip shortage and that, says a new report, could see Apple’s iPhone production also hindered.

According to a new Nikkei report, Samsung’s closure of a manufacturing plant due to weather issues has caused chip shortages will in turn impact Qualcomm and its modem business.

But it’s the OLED panel situation that will cause Apple the most trouble.

The Samsung Texas plant manufactures telecommunications chips for the U.S. semiconductor giant Qualcomm. The facility also produces chips for organic light-emitting diode panels and for image sensors.

The supply crunch hitting Qualcomm will affect a wide range of smartphone makers that rely on the company for key components. Apple, which procures OLED panels from Samsung, could also face disruptions in ‌iPhone‌ production.

It isn’t clear right now which iPhones will see their production impacted, but it is possible that it could be Apple’s entire lineup. The company could, presumably, push resources towards its more popular product and away from those that do not sell particularly strongly.

If recent reports are correct, that will likely mean iPhone 12 mini, in particular, will see its manufacturing numbers slashed.

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