According to GSMArena, Apple is in discussion with BOE to secure the display of its OLED panels for future iterations of the iPhone. This will be an extension of the companies’ current partnership — BOE already supplies Apple with LCD panels for MacBook and iPad products.
It was previously reported that LG would become Apple’s secondary supplier of OLED technology. GSMArena says that a deal between the two companies is still on the table, but BOE will become the company’s next main supplier, rather than LG. For some time, Apple has been keen to move its supply of OLED panels away from its direct rival Samsung in order to lower costs and detract from Samsung’s dominance of the OLED industry.
GSMArena’s sources suggest that iPhones equipped with BOE OLED displays could hit the market in 2020. Until then, iPhone OLED displays will still be sourced largely from Samsung, with LG making up a small percentage. BOE’s senior VP Dr. Guanshan Tong says that the company’s facility in Chengdu, China is at a 70% yield. Sources say this should put it in a good position to provide Apple with mass production capabilities.
Analyst Comment
While I can understand that Apple really doesn’t want to rely on Samsung, it seems to me unlikely that Apple would use BOE as the main supplier. Apple, over the years, has been very conservative about its supply chain and at the moment BOE is not a proven volume supplier of OLED, although it is, of course, well established in LCD now, although mainly in volume and lower technology segments. It would be a huge risk to put the majority of its iPhone business on the line for a relatively new supplier. I could imagine Apple using BOE as a secondary supplier to establish the level of quality that is being supplied. (BR)
