Re: It was actually the 3D scanners
They were 3D scanner constrained, but the price point and multi phone strategy was driven by the OLED display. The 3D scanner production was ramped up quickly. Not so the OLED display and they had known for a long time there was excessive risk a second supplier would not be available. LG, were struggling to make the cut with quality and yield issues and it was known for a long time previously that they were unlikely to make it. Samsung had been producing displays at the required quality for some time though - but Apple was not intending to give all the business to Samsung - plus Samsung knew LG wouldn’t make it so had assigned a disproportionately high price tag for the part. There was no way of ramping up the volume because of the sophistication of the production of each OLED display part and essentially at that point Samsung were the only supplier who could meet spec.
These reports of iPhone X sales dropping off. Apple is likely ambivalent about that. I’m not sure if LG are even ready this year. Their two supplier strategy for components has failed for the display because it has become a premium part, could not be pushed to being a commodity through supplier competition, and only Samsung have been able to make them. Hence Apple now investing in their own OLED production facilities. Like with chip production, they see now see an advantage in owning that part of the supply chain because the issue won’t be going away any time soon.
Biting the hand that feeds IT
