For iPhones, Samsung and LG have reliably fulfilled panel orders for Apple for years, whereas BOE often runs into manufacturing or quality control issues that prevent the display maker from being prioritized for future shipments. However, with Trump’s tariffs looming over the iPhone 17 launch, with the possibility that Apple might have to pay an additional 25 percent for every unit that is not manufactured in the U.S., it makes sense to add a third manufacturer to the supply chain. The only problem is that, based on the latest data, BOE does not make up half of the estimated OLED shipments from Samsung and LG, which are said to deliver approximately 113 million units this year.
With all four iPhone 17 models reportedly being treated to LTPO OLED, BOE does not have the luxury of time in ramping up production that is rich in both quality and quantity
Even though BOE has the capacity of mass producing 100 million iPhone OLED panels annually, the latest research states that out of 26 dedicated lines, only 11 are currently operational. DealSite reports that each line has a monthly production output of 350,000 units, and BOE is estimated to supply Apple with 45 million LTPO OLED panels this year.
While it is unconfirmed why all the production lines are not operational, it might have to do with maintaining Apple’s cutthroat quality requirements, so it could produce smaller quantities to minimize the number of defective displays, reducing its losses for the year. In comparison, Samsung is estimated to supply 70 million panels, while LG is tasked with fulfilling 43 million units, with both manufacturers totaling 113 million units for this period.
An unnamed industry source has mentioned below that it is a remarkable feat for BOE to have received the green light from Apple to produce iPhone 17 panels, even if it is in smaller quantities. The Cupertino giant’s latest move could make Samsung and LG nervous, with the tipster @Jukanlosreve mentioning crucial details in his post revolving around Korean manufacturers having suspicions that Apple could perhaps be transferring unauthorized OLED secrets to its Chinese supply chain partner.
“The fact that BOE has received quality certification from Apple, even if only in small quantities, shows that BOE’s technology has advanced compared to before. The technology gap between Korea and China will only narrow in the future. There are also suspicions that Apple is secretly transferring OLED technology to BOE, which is making Korean companies uncomfortable. The recent string of patent lawsuits is not unrelated.”
Then again, Apple has sufficient reason to stick with BOE, as it continues to face fierce competition in China because of Huawei and other local brands. A display manufacturer with a production footprint on its home turf can reduce the components bill of the iPhone 17, giving Apple the opportunity to pocket higher margins for every unit sold in the country. Keep in mind that China is the largest smartphone market by volume, meaning that all companies involved in producing these devices will benefit in one way or another.
News Source: DealSite
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