Per reports, Apple Inc (AAPL Quick QuoteAAPL - Free Report) has ordered nearly 70 million OLED screens from Samsung Electronics . Media reports further add, “The large order suggests that Apple expects its new premium iPhone 7 to [be] launched late 2017 to fly off the shelves." Notably, these screens are only for Apple’s rumored iPhone 8 model.

There continues to be a lot of speculation about Apple’s iPhone 8. It is special as it will mark the tenth anniversary of the first iPhone.

Apple is expected to make a big innovation leap with this new edition phone, with rumored features like a glass body, a dual curved edge-to-edge OLED display with a built-in Touch ID sensor, wireless charging and higher storage options. Reportedly, iPhone 8 will be the first iPhone to support AMOLED (active matrix organic light-emitting diode) display. Also, the phone will have a big display screen of 5.8 inches. Media reports further add that the display will have a 2K set up and display ratio could be more than 2:1. OLED display will also boost the phone’s battery life. The leap in display technology, among other innovations, has prompted analysts to label iPhone 8 as a “super cycle.”

There are rumors doing the rounds that supply of the OLED phone will be limited at the time of its unveiling in September. Most customers will not be able to get their hands on the new phone until later in the year, reports MacRumors.

However, there is a catch. Reportedly, with the new features and new technology, Apple could price iPhone 8 as steep as $1,000 or more. The price tag could be a constraint.

Apple Inc. Price

Apple Inc. Price | Apple Inc. Quote

Nevertheless, many analysts argue that the existing iPhone 7 and 7 Plus editions, with 256GB storage, carry price tags of $849 and $969, respectively. So a price tag of $1000 should not be considered unreasonable for a fully redesigned limited edition OLED iPhone 8.

We believe that in the near term at least, Apple’s fortunes are tied to its most important offering, iPhone. In Sep 2016, the company launched the iPhone 7 and iPhone 7 Plus handsets, which have been doing pretty well. To further push its advantage, the new iPhones were made available in more than 130 countries, representing the fastest rollout in the history of iPhone. In the first quarter, total sales of iPhone units were up 5% to $78.4 million.

Considering the upgrade cycle trends, the company seems well placed to gain, especially in mature markets. In the past six months, Apple shares have registered growth of 27.09% as against Zacks Computer Mini Industry’s gain of 25.95%.

For now, the launch of iPhone 8 has caught the fancy of one and all. If the rumors are correct and the iPhone marks a big jump in innovation, it is unlikely that people would be reluctant to shell out $1000 for the new OLED iPhone, boosting Apple’s top line.

As far as Samsung is concerned, the company has long been one of Apple’s biggest suppliers for iPhone components. Apart from being a supplier, Samsung along with Apple is also a leading player in the global smartphone space.

This year is equally important for Samsung. The Korean giant recently unveiled its latest smart phones, Galaxy S8 and S8+, at the “Unpacked” event held in New York. The phones will be available from Apr 21, 2017.

Per media reports, the phones have very large display screens (S8 has 5.8 inch while S8+ has 6.2 inch display), as the borders are considerably reduced due to the absence of the home button. In fact, the home button has been moved to the bottom of the screen and is eerily similar to Apple’s Force Touch. However, it is Dex that has been touted as S8’s biggest improvement. Reportedly, this new feature enables users to connect peripherals like mouse, keyboard and monitor with the smartphone and use the phone as a desktop. 

The company needs these new phones to be a hit in order to reverse its misfortunes. Last year, Samsung found itself in troubled waters after the Galaxy Note 7 fiasco.  The company had to make an embarrassing recall of its highly anticipated product following a battery issue that caused phones to explode while charging. Moreover, the arrest of the company chief, Jay Y. Lee, also created more wariness toward the brand.

What the future holds for both the companies remains a wait and see story.

At present, Apple carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Better-ranked stocks in the wider technology space include Tech Data Corp and Leaf Group Ltd . While Tech Data sports a Zacks Rank #1, Leaf Group carries a Zacks Rank #2 (Buy).

In the trailing four quarters, Tech Data and Leaf Group have yielded positive average earnings surprises of 8.73% and 27.94%, respectively.

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