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To further diversify its supply chain, Apple is "aggressively testing" the flexible OLED displays of the Chinese group BOE Technology for its iPhone 2020 models. Nikkei Asian Review Apple is about to finalize the certification of advanced display technology, which would have the dual purpose of reducing costs and reducing the company's dependence on Samsung, a leading provider of Apple.
When Apple launched the iPhone X, Samsung was its only supplier of OLED screens, since no other supplier was able to meet the company's demand for this expensive component. LG Display has been added to the supply chain in 2018, but Samsung has continued to provide the vast majority of screens for the iPhone XS.
As Nikkei Note, BOE has previously provided LCD panels to Apple for MacBook and iPad, but this would be the first time that Apple was procuring OLED panels from a Chinese supplier. According to IDTechEx Research, the OLED market is expected to grow from $ 25.5 billion in 2018 to more than $ 30 billion this year, which should illustrate how transformative Apple's decision could be transformed for BOE and the Chinese screen industry in general.
According to sources, Apple is currently testing OLED screens at the BOE facilities in Chengdu, capital of China's Sichuan Province. It is said that BOE will also build a second facility in the area, and if Apple places orders at BOE, the new facility will only be used to provide Apple with the parts it needs.
In 2017, a dismantling IHS Markit claimed that the OLED display accounted for 110 USD on the 370.25 USD cost of building an iPhone X. It is by far the most expensive component but a source Nikkei the BOE screen can be 20% cheaper than the screen provided by Samsung. Thus, even if the iPhone 12 does not offer a redesign as radical as the Galaxy S10 or a remarkable novelty, Samsung could still suffer a major defeat next year.
Source of image: Zach Epstein, BGR
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