Asian Tech Press (Oct 13) -- Apple Inc. has listed China's BOE Technology Co. as one of its premium display suppliers for the latest iPhone 13, but neither Apple nor BOE has responded yet, Nikkei said Wednesday, citing several sources familiar with the matter.
BOE began supplying a small number of OLED displays for the 6.1-inch iPhone 13 at the end of September and is also preparing to increase shipments in the near future after going through the final certification process, sources close to the matter said.
"It is within the course of ultimate testing, however primarily based on the outcomes of earlier samples, BOE shouldn't have any drawback passing the assessments," an executive with direct knowledge of the matter told Nikkei.
The insider said, "The muse of the collaboration between Apple and BOE is predicated on their earlier undertaking on the iPhone 12, and each Apple and BOE need this to occur quickly."
The final quality control process, which focuses on the durability of the screen, will end as early as this month, people familiar with the matter said.
It is the first time BOE, the largest display maker in mainland China, has supplied displays for Apple's new flagship iPhone. The company currently only supplies screens for lower-priced models and has previously supplied Apple with displays used in iPhone repairs and refurbishments.
The report notes that BOE will initially share orders with Samsung for the 6.1-inch iPhone 13 display, where it will have a share of up to 20%. Under the most optimistic scenario, BOE plans to take 40% of the orders for this model from South Korea's Samsung.
BOE's plant in Mianyang, Sichuan province, will be responsible for producing OLED displays for the iPhone 13, and the Chinese phone makers including Huawei, Honor, Xiaomi and Vivo have already been sourcing OLED screens there.
The China-based firm also produces liquid-crystal displays (LCDs) for Apple's iPad. It has been trying for years to get into the high value-added segment of the iPhone supply chain, but it is far more difficult to manufacture the OLED displays needed for Apple's iPhones than LCDs.
Nikkei said BOE's entry puts a lot of pressure on South Korean companies LG Display and Samsung Display, the latter in particular. Samsung Display has been the dominant supplier of OLED displays for the iPhone since 2017.
However, the introduction of a third supplier will give Apple stronger bargaining power in negotiations with the South Korean companies, Nikkei stressed.
