Apple is currently engaged in negotiations to lower the prices of OLED screens for its upcoming iPhone 18 Pro and iPhone 18 Pro Max models. This effort is crucial for the company as it faces rising component costs due to a severe chip shortage affecting the technology sector.

According to sources cited by DealSite, Apple aims to pay approximately $68 for each OLED screen from LG and Samsung, a significant reduction from the $110 to $120 it previously paid for the iPhone 17 Pro Max screens. The ongoing chip shortage has led to increased prices for various components, particularly memory chips, which are in high demand due to investments in AI infrastructure.

The imbalance between supply and demand has resulted in soaring RAM prices for devices like the iPhone, raising overall production costs. As a result, Apple's pricing strategy is putting pressure on the display industry to lower prices. Experts suggest that both Samsung and LG may have no choice but to comply with Apple's pricing demands.

Historically, LG's screens have been more expensive than those from Samsung, but in this instance, both companies are expected to offer their screens at similar price points. The advancements in OLED technology have also contributed to decreasing costs over the years, shifting the competition from technological capabilities to cost reductions.

Apple plans to utilize the latest OLED M16 material from Samsung Display for the iPhone 18 series, which is expected to enhance brightness, longevity, and color display capabilities. Market research firm UBI Research forecasts that Samsung Display will supply 46 million OLED panels for the iPhone 18 series, while LG Display is expected to provide 41 million panels.

Despite efforts to reduce component costs, analysts predict that the iPhone 18 Pro will still see a price increase of $200 to $300, potentially setting the starting price at around $1,400, while the iPhone 18 Pro Max could reach $1,500. Although Apple has recently raised prices for some of its Mac and iPad devices, it has not yet adjusted iPhone prices. If negotiations for the screen prices are successful, the anticipated price increase for the iPhone 18 Pro may be closer to $200 instead of $300, although it will take time to confirm these details.