Samsung is being slated as it is starting manufacturing of displays for the next big iPhone release earlier than anticipated. This is assumed to be a result of BOE’s problems in addressing issues of light leakage caused by the dynamic island, a literal hole in the top of the display. That may just mean that BOE is not able to pass Apple’s quality assurance (QA) procedures, and Apple doesn’t have much time to ensure it stays on track for a launch later this year.
Apple has planned to move the iPhone 15’s proximity sensor into the dynamic island, resulting in an extra hole in the display. A cheaper sensor and better integration were going to be a cost-saving but Samsung is probably going to be charging more for its display than BOE. Will that impact pricing on the iPhone? Who knows? Apple can afford to take a hit on margins if you think about how much cash the company has on its hands and how much margin it already has, but any margin hit could also dull the sheen of the brand in financial markets, spooked as they are already by all other tech companies going through layoffs and facing financial downturns. So, this is unlikely to be the end of the story for BOE. BOE is going to be the preferred supplier for Apple in this instance once it figures out how to iron out its problems. According to The Elec, that should happen before year-end. So, in answer to my clickbait-y title, no, Samsung is not going to take over the display business that BOE was slated to have. There’s just not going to be a price point at which Samsung will beat out BOE.
The iPhone 15 series is slated to launch in September of this year. Apple is going to want to have differentiation between the iPhone 15 and iPhone 15 Plus, and the iPhone 15 Pro and Pro Max. The former will use LTPS TFT panels, which are standard refresh rate panels, while the iPhone 15 Pro and Pro Max will use LTPO TFTs, with variable refresh rates of 1–120 Hz and ProMotion technology. The dynamic island is a standard feature and the 15 and 15 Plus will come with an A16 chip while the Pro models will have solid-state volume and mute buttons, an A17 chip, and thinner bezels, among other issues. All will be USB-C based.
I would have a few questions about the situation with BOE. Some of the possible reasons why light leakage may be occurring—sealing inadequacies, misalignment of layers in the manufacturing process, contamination, and defective materials—could all be related to BOE’s access to next-generation production tools. Is BOE having problems because of delays in receiving the equipment, materials, or other supplies it would have needed as a result of the US-imposed sanctions on Chinese manufacturers? What’s the real pricing advantage for BOE over Samsung for a similar display? Will the company really be back on track before the end of this year, or are we to accept that the geopolitical situation will get better before it gets worse?
