Apple is actively diversifying its OLED supply chain to reduce reliance on Samsung Display, increase bargaining power, and address evolving demand across different iPhone models. LG Display is accelerating plans to produce iPhone OLEDs using a line originally dedicated to iPad Pro panels, where weaker-than-expected demand for the OLED iPad has left underutilized capacity, according to The Elec. By shifting some of its monthly throughput of 15,000 sixth-generation glass sheets to produce up to 5,000 sheets for iPhone OLEDs, LG Display aims to raise its overall production efficiency and meet Apple’s requirement for additional supply ahead of the iPhone 17 launch later this year.
The decision to install new equipment and commence mass production as early as the third quarter signals LG Display’s heightened ambitions in the iPhone segment, a move expected to boost its annual iPhone OLED shipments from the mid-60 million range last year to the high-70 million range in 2023. This dovetails with Apple’s broader strategy for the upcoming iPhone 17 series, where all four models are rumored to adopt LTPO TFT technology, a feature that had been reserved for the Pro lineup in earlier generations.
Historically, Samsung supplied about 50%, LG 30%, and BOE 20% of iPhone OLED displays. For iPhone16e, BOE contributes 60%-75% (12-15 million panels), LG 25%-37.5% (6–7.5 million panels), and Samsung is minimal.Although Samsung Display’s technical expertise and volume capacity remain crucial for Apple’s premium models, the Cupertino giant is actively promoting contributions from LG Display and BOE to mitigate the risks of depending too heavily on a single supplier, especially one that competes directly with Apple in the global smartphone market. The emergence of a budget-friendly iPhone 16e has further underscored this supply chain shift, with BOE taking the largest share of OLED panels for that entry-level device, while LG Display provides supplementary volumes. Samsung Display’s share in the 16e is reported to be minimal, reflecting Apple’s desire to diversify suppliers and manage cost pressures on its lower-priced devices.
By reusing the OLED technology from the 2022 iPhone 14 for the 16e, Apple also ensures cost-effective production while carefully calibrating volume to avoid cannibalizing higher-tier iPhone 16 models. Looking ahead, Apple’s strategic balancing act of leveraging Samsung Display for cutting-edge features in top-tier models, while increasing LG Display and BOE’s roles in both mainstream and entry-level devices, highlights the company’s effort to reinforce its bargaining position, maintain multiple sources of supply for risk management, and ultimately optimize pricing and product competitiveness across the entire iPhone lineup.
Another Chinese display manufacturer, Tianma, has reportedly secured a contract to supply 7-inch panels for Apple’s upcoming HomePod model with a built-in touchscreen, marking the first time a smart speaker from Apple will feature a display. Conflicting reports suggest the panel could be either LCD or OLED, though Tianma’s competitive pricing of around $10 per unit makes an LCD offering more likely. Previously known for providing rigid OLEDs for MacBook touch bars, Tianma’s new partnership represents a significant expansion of its role in Apple’s product lineup. The display-equipped HomePod, now slated for a 2025 release, is intended to serve as a central home hub with enhanced smart device integration.
