Samsung Might Lose iPhone OLED Business From Apple as a Major China Player Aims to Make a Serious Bid
Apple required an immense number of OLED displays that also match the tech giant’s strict quality control measures and Samsung was the only one that could provide that pairing of quality and quantity.
Sure enough, the Korean manufacturer became Apple’s only supplier and that meant the company would be charging a hefty sum per component. Well, Samsung could take advantage of this opportunity as much as possible because a Chinese OLED manufacturer might take it away from the former.
Chinese OLED Manufacturer BOE Reportedly Wants Exclusive iPhone OLED Business Deal With Apple Through a Multi-Billion Dollar Offer
How exactly will Samsung’s OLED business deal with Apple for current and future iPhones be in jeopardy? Well, for one thing, BOE, who is China’s largest display manufacturer, wants an exclusive iPhone OLED deal with the California-based giant and they are reportedly showing that they can deliver.
According to ETNews, BOE is set to have not one, but two OLED production lines that will be catered for the iPhone display.
“Its plan is to satisfy Apple, which is thirsty for supply and demand of OLED, by constructing large-scale production lines exclusively for Apple. It was heard that BOE’s executives recently visited Apple and shared such business plan.
According to representatives from multiple industries on the 27th, BOE has set a plan to use its B11 line, which is located in Sichuan, and B12 line that is currently in an investment process as production lines exclusively for Apple. BOE is planning to invest $7.04 billion (46.5 billion Yuan) in total into B11 and it started ordering major equipment for front-end processes in this past June [but] has not finalized on its investments for B12 line.”
It has not been confirmed if Apple agreed or not but the company normally likes to keep two suppliers for a specific component. This helps give the tech giant more negotiation leverage over its suppliers, but with Samsung being the only manufacturer of OLED screens for the iPhone X and potentially future phones, Apple currently has no choice but to stick with its smartphone rival for now.
Do you think Apple will terminate its partnership with Samsung for an exclusive iPhone OLED supply deal with BOE? Tell us your thoughts down in the comments.