Apple could add another supplier to its list of OLED display manufacturers for future iPhones, a new report claims.
The company in question is China’s BOE Technology Group, whose screens Apple is said to have been testing “for months.” BOE is currently spending $14.5 billion building two AMOLED factories in the southwestern province of Sichuan, China in anticipation of possible orders.
Talks between Apple and BOE are reportedly still in the preliminary stages, which means that the company would likely not be involved with production of this year’s iPhone 8. However, its current trajectory means it could supply screens for handsets shipped in 2018 and beyond.
When the BOE plant is up to full capacity, it is planned that it will be able to manufacture 48,000 glass substrates per month.
Samsung is still the big player
For this year’s iPhone 8, Apple will reportedly source its OLED displays from Samsung Display. Samsung boasts OLED screens on around 70 percent of its own smartphone models, including its flagship S series. Samsung Display currently holds about 95 percent of the mobile OLED market, although rival companies such as LG Display Are said to be ramping up their own OLED production for future years.
From Apple’s perspective, the more manufacturers it can get to build OLED displays, the better.
Not only does the limited number of current suppliers pose a risk for Apple if they are unable to deliver the quantities the company requires, but it also means that Apple has limited leverage when it comes to negotiating prices. This is why Apple has expanded its number of suppliers in recent years.
Source: Bloomberg
