Apple gained a key advantage by offering the iPhone X with OLED screens. And the screen is also one of the reasons for the hefty price tag.
Interestingly, the sole source of supply for the screens is Samsung, one of Apple’s biggest rivals. As a sole source provider, Samsung gains insights into its competitor’s sales, while generating revenue from those sales.
Now, Apple is dropping its orders by up to 50% this quarter, leaving Samsung with extra capacity for OLED screens. And it leaves us all wondering, what’s the next move for these tech giants?
This post is based on the Forbes article, Apple’s Cunning iPhone X Plans Are Causing Problems for Samsung, by Ewan Spence, February 19, 2018.
1. What are the potential issues with this type of sourcing strategy?
Guidance: Obviously, one of the issues for the customer, is giving a competitor access to projected sales. Most organizations don’t like to share this information. With a single source of supply, a company is also vulnerable because there isn’t a backup supplier.
Samsung won the business as the only available choice at the time of the iPhone X introduction, but Apple Continue reading