iPhone 8 OLED Display Not Enough For Apple Fans To Upgrade, Analysts Say

The iPhone 8 is expected to come with a bezel-less OLED display screen, which will make the devices better looking than previous models. However, some analysts believe the new screen technology won’t convince people to upgrade their iPhones, according to a note seen by Business Insider.

Although the OLED screen can emit more accurate colors and could use less battery than current iPhone displays, the feature alone might not be a driving factor for consumers, Barclays analysts said.

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The analysts wrote:

"In terms of the year ahead, OLED displays continue to be top-of-mind for investors when contemplating form factor improvements that could drive a growth revival, particularly with the iPhone. With OLED, we struggle to see the incremental benefits visually that would inspire a customer to replace an adequately-performing device. While battery life could improve with OLED, our conversations with industry participants suggest that most consumers will not notice any major ‘must have’ experience changes because of new OLED displays versus LCD. We think that this dynamic, if sustained, could limit the upside potential related to new OLED-based devices that likely sell for a premium, which could keep average selling prices from moving much higher."

If the iPhone 8’s only feature is the OLED screen display, that will not be enough to get iPhone fans to upgrade, the analysts said.

It’s also worth noting that the steep $1,000 price for the device could keep people from upgrading. The high price could affect sales of the iPhone 8, Deutsche Bank analysts said earlier this week.

"Generally, when prices go up, demand goes down," the Deutsche Bank analysts said. "A scenario where prices go up and demand goes up seems highly unlikely in our view."

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The analysts also predicted Apple won’t sell as many iPhone 8 units as it did with the iPhone 6, saying the anticipated boost in iPhone replacement for the 10th anniversary smartphone won’t happen.

"We believe investors will be disappointed by iPhone growth in FY-18 and FY-19," the analysts wrote.

iPhone 8 Features, Rumors

Apple is said to have signed a two-year deal worth $9 billion with Samsung for OLED panels. The Cupertino company is reportedly set to receive 80 million panels delivered from Samsung for the smartphone.

Although the OLED screen might not entice Apple fans to upgrade their phones, other features might.

The iPhone 8 is rumored to come with an embedded Touch ID, wireless charging technology and a vertical dual-camera system for better pictures. The device is also expected to come with a 3D-sensing front camera, which could allow for AR and VR capabilities and facial recognition technology. The 10th anniversary iPhone could also come with a True Tone feature for the display, a 10W power adapter with USB-C connector and an integrated USB-C Power Delivery chip, which will allow for faster charging.

The iPhone 8 will be released this fall alongside the iPhone 7S and iPhone 7S Plus.