Apple's upstream supply chain has begun mass producing components for the vendor's three next-generation iPhones: a 4.7-inch model and a 5.5-inch model both featuring reinforced glass chassis with aluminum metal frame; and a 5.8-inch model featuring reinforced glass chassis with metal frame and an AMOLED panel, with Samsung Display set to supply up to 80 million AMOLED panels for the new 5.8-inch iPhone in 2017.
Samsung Display's remaining capacity, which is expected to output another 80 million AMOLED panels in 2017, will be used to supply orders from Samsung Electronics and its other smartphone clients, but the panel maker is expected to keep some flexibility in case Apple places additional orders.
As for the new 4.7-inch and 5.5-inch iPhones, the sources expect combined shipments to reach around 25-30 million units in the second half.
Commenting on iPhone shipment plans, Digitimes Research senior analyst Luke Lin noted that Apple's new 5.8-inch iPhones are expected to see shipments between 50-55 million units in the second half, but mass production for the smartphone is unlikely to start until after mid-September, and production volumes in the third quarter will only be around three million units, judging from the current manufacturing status of the upstream supply chain.
In the third quarter, shipments of Apple's existing iPhone models including iPhone 7, 7 Plus, 6s, 6s Plus, SE and 6 (32GB) will reach a total of 25-30 million units, bringing Apple's overall iPhone shipments in the third quarter to around 45-50 million units.