Apple Makes Strategic Shift in iPhone 17 Pro Supply Chain
In a significant move, Apple has reportedly dropped BOE, a Chinese panel manufacturer, from its supply chain for the iPhone 17 Pro. This decision, highlighted in a recent report from Korea, underscores ongoing challenges faced by BOE regarding product reliability.
Challenges with BOE’s Panel Production
BOE’s struggle to meet Apple’s reliability standards has impeded its ability to secure a substantial role as a supplier this year. Originally, BOE was slated to deliver up to 10 million LTPO (Low-Temperature Polycrystalline Oxide) panels for the iPhone 17 Pro models targeting the Chinese market. However, sources indicate that these production challenges have ultimately led to Apple seeking alternatives.
Samsung Display Steps In
With BOE unable to fulfill its contract, Samsung Display will take over the responsibility for providing panels. To accommodate this shift, Samsung plans to boost its OLED panel supply to Apple from an expected 80 million units to 90 million units. This increase allows Apple to ensure that the iPhone 17 Pro has a reliable supply of quality displays.
The Broader Implications for BOE
Currently, BOE also supplies panels for other iPhone models. However, analysts believe it’s becoming increasingly unlikely for the company to reach its target of 40 million units for 2025, given the ongoing difficulties. Furthermore, Apple’s requirements for LTPO technology pose specific production challenges that BOE has yet to overcome.
A Moment of Resolve with Samsung
This decision comes on the heels of BOE resolving a patent dispute with Samsung regarding OLED technology. As part of their settlement, BOE has agreed to pay Samsung royalties for the use of its intellectual property, indicating an ongoing relationship between the two companies, albeit under complex circumstances.
For more details about this supply chain shake-up and its implications for both Apple and BOE, you can read the full report here.
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