Apple has ordered 70 million OLED panels from rival Samsung for upcoming iPhone 8

Shares of Samsung Electronics got a boost on Tuesday after the report that archrival Apple had ordered 70 million display panels that the South Korean giant specializes in for the upcoming iPhone. Samsung’s stock closed at 2.1 million Korean won, posting a rise of 1.54 percent.

Citing a supply chain source, Nikkei reported that Apple has placed orders for bendable organic light-emitting diode panels for use in 70 million handsets for the year. OLED offers brighter displays and better power efficiency over liquid crystal displays currently in use.

Samsung’s OLED displays are used on its own flagship Galaxy devices, and the company is a market leader in the area. Apple is expected to launch three new iPhones later this year, with the anniversary edition iPhone 8 believed to have a slightly curved 5.2-inch OLED screen. This will be the most expensive model. The two other iPhones will have LCD displays. It would be the first time Apple has used OLED displays on its flagship device.

Quoted IHS Markit analyst David Hsieh as saying that the order for 70 million units of OLED panels is in line with his expectations. He added that Samsung is expecting to produce as many as 95 million units for Apple in 2017, in case demand exceeds expectations. Hsieh also said Samsung is likely to be the sole supplier.

“It is also possible that some of these 70 million handsets will not be shipped to customers this year and be carried over to next year depending on demand,” Hsieh told.

The 70 million unit figure gives a sense of the kind of bullish demand Apple is expecting for the anniversary model, which some analysts are suggesting could cost $900 to $1,000.