After unsolicited design changes, Apple is said to have decided to only rely on Samsung and LG for its next smartphone.
Apple cancels apparently a supplier for one of the most important components of the iPhone. The Chinese display specialist BOE Technology should build around 30 million OLED panels for the next generation of smartphones. According to a media report from South Korea, these orders would now be passed on to the other two display suppliers, Samsung and LG Display.
BOE Technology was actually supposed to help Apple’s Diversify the iPhone supply chain. For the “iPhone 14” and the “iPhone 14 Pro” including their Max models, Apple plans to order a total of 150 million panels, which would be 10 million more than originally planned, writes the electronics trade journal The Elec. 120 million of them should come from Samsung and LG Display. Now the two South Korean producers are also said to be taking over the BOE share.
The reason for Apple’s switch is that BOE Technology has apparently made technical changes to the design of the panels to be supplied, which Apple apparently only did coincidence. The so-called circuit width of the thin-film transistors was increased, apparently in this way the production yield (yield) should be increased. Apple didn’t like that at all. The BOE management then tried to salvage what can be salvaged by visiting Cupertino on site, but Apple apparently felt that the unsolicited change was a breach of trust. The iPhone group is known for making extremely high demands on its suppliers and always having numerous special and customization requests that need to be implemented.
LG and Samsung should fix it
Apple is said to have not yet made any decision to BOE Technology as to whether there really are no orders; approval to start OLED panel production for the “iPhone 14” however, has not yet been granted. Observers therefore assume that there will be an exclusion – in favor of Samsung and LG Display. They also seem to have the necessary capacities there.
For BOE Technology this would be another defeat. Fewer displays are said to have been produced in the first half of 2022 because the company lacked the necessary components – including display driver ICs. There should be another change at LG Display: For the first time this year, an LTPO-TFT-OLED (Low-Temperature Polycrystalline Oxide) will be produced for Apple there, which will be used in the “iPhone 14 Pro Max”. should stick. With the start of display panel production for the “iPhone 14” is expected in June at the earliest.