BOE, a display supplier, is striving for a major comeback in Apple’s display supply chain after some turbulent times. The company is reportedly expanding its OLED panel production, aiming to secure more iPhone display orders.
While Apple’s iPhone supply chain is dominated by Samsung Display and LG Display, BOE, a much smaller player, has its sights set on becoming a key contender in the market.
According to a new report from UBI Research in their China Display Trend Report, BOE has significantly ramped up its production capacity, now capable of producing 100 million OLED panels annually for Apple. The company has 26 module lines, 11 of which are for mass production, with another 3 dedicated to module development. BOE has also dramatically reduced its assembly time, achieving a remarkable 5.5 seconds per panel. This efficiency allows each line to produce around 350,000 units per month, with B11 lines alone capable of producing 8 to 9 million panels per year, based on a 90% utilization rate and an 85% yield. However, this still lags behind the production efficiency of Samsung.
Despite its efforts, BOE remains a relatively minor player in Apple’s display supply chain, with Samsung and LG Display leading the pack. BOE’s relationship with Apple has been rocky, especially after the company was caught altering Apple’s display specs in 2022, leading to a reduction in orders. Furthermore, BOE failed to qualify for supplying OLED displays for the iPad in 2023.
Currently, BOE is expected to ship 24 million OLED panels to Apple in the second half of this year, with a total of 45 million panels projected for the entire year. However, the company is reportedly hoping to secure additional orders for the iPhone 17 series, aiming to compete alongside Samsung and LG. Still, proving itself to Apple could prove challenging, as the tech giant is renowned for its stringent quality control, and BOE is still catching up to Samsung and LG in terms of expertise. Only time will tell if BOE can fully utilize its production lines for Apple and secure a more prominent role in the iPhone display supply chain.