Apple 'Aggressively Testing' OLED Displays From China's BOE for 2020 iPhone Lineup

[MacRumors]

Apple is in the final stages of certifying flexible OLED panels produced by BOE Display for use in future iPhones, according to a new report out today.

The Nikkei Asian Review says Apple is "aggressively testing" screens made by the Chinese company, as it considers taking on BOE as an OLED supplier to cut costs and reduce its reliance on Samsung, which is believed to be Apple's primary supplier of OLED displays.

BOE is the world's top producer of large liquid crystal screens and already makes liquid crystal displays for Apple's iPads and MacBooks, but the firm has its sights set firmly on the expanding OLED panel market, which is expected to be worth more than $30 billion this year, up from $25.5 billion in 2018.

At the same time, Apple is seeking to diversify its supply chain as much as possible. The company often tries to secure at least two suppliers for any given component in order to reduce its supply chain risk and improve its bargaining position. Given that Samsung's OLED panel is the most expensive component in the iPhone XS and XS Max, bringing on board another supplier would be a significant coup for Apple.

According to today's report, Apple is currently testing flexible OLED displays from BOE's facility in Chengdu, Sichuan province, which is China's first site to produce the advanced displays. BOE is also building another facility in Sichuan province, which would be allocated to Apple if it places orders, Nikkei's sources said.

Two sources with knowledge of the situation said BOE was likely to supply the new iPhones next year if it wins certification. But it might first be asked to offer displays for repair purposes, as well as panels for older models of iPhones, one source suggested. That would still mark a significant milestone for BOE, the source said, as it would be Apple's first-ever purchase of Chinese-made OLED displays.

LG is believed to be the only other OLED supplier Apple is considering for future iPhones. LG already supplies OLED displays for the Apple Watch, but Apple will only order them for iPhones if the South Korean firm can meet the component's high quality control standards - LG reportedly temporarily halted one of its OLED display production lines due to manufacturing challenges earlier this year.

Rumors suggest Apple will complete its transition to an all-OLED lineup in 2020, releasing high-end 5.4-inch and 6.7-inch models with OLED displays and a lower-end 6.1-inch model with an OLED display, according to analyst Ming-Chi Kuo.

Article Link: Apple 'Aggressively Testing' OLED Displays From China's BOE for 2020 iPhone Lineup

 

[ColdShadow]

Cutting costs again,and switching from high quality OLED panels made by Samsung to China brand..it’s sad.
and what happened to Apple’s investment in Japan Display company?? why change to Chinese brand??

 

[69Mustang]

LG already supplies OLED displays for the Apple Watch, but Apple will only order them for iPhones if the Japanese firm can meet the component's high quality control standards

Small correction: LG is South Korean. Japan Display is the only company with Japanese ties and it's essentially owned by Apple and Chinese investors.

 

[Adam Warlock]

Cutting costs again,and switching from high quality OLED panels made by Samsung to China brand..it’s sad.
and what happened to Apple’s investment in Japan Display company?? why change to Chinese brand??

Fewer and fewer people are willing to shell out $1000-$1500 for a new phone every year so Tim Apple has to find more and more ways to squeeze every last penny he can to maintain those obscene profit margins. Sure, it's what businesses are supposed to do, but there's a limit to everything. Luxury cars buyers will stop buying your $90,000 if you replace the wood trim with plastic versions. Same thing will end up happening to Apple if they start cheapening out here and there.

 

[bobob]

Fewer and fewer people are willing to shell out $1000-$1500 for a new phone every year...

Fixed that for you.

Smartphone technology has plateaued - - no one needs to buy a new phone every year.

Plus, if you buy a quality device like an iPhone, which comes with 5 years of OS and security updates, your pro-rated annual cost is very reasonable.

 

[Zaft]

Cutting costs again,and switching from high quality OLED panels made by Samsung to China brand..it’s sad.
and what happened to Apple’s investment in Japan Display company?? why change to Chinese brand??

You are assuming they are bad quality? On what basis?

Apple has high standards as they have not put on LG as a 2nd OLED supplier due to issues. Why would Apple suddenly accept substandard displays from China... for all we know they may end up being the same as Samsung’s.

 

[I7guy]

Samsung is not the only company on this earth to make good oled panels. Good move by “Tim Apple.”

 

[one more]

LG is a South Korean company, not Japanese as the article states.

 

[69Mustang]

Samsung is not the only company on this earth to make good oled panels. Good move by “Tim Apple.”

True. Samsung isn't the only company to make good OLED panels. To date, they have been the only company to make good OLED panels at sufficient volume and quality. We don't know if this is a good move or not because we don't know what volume and quality BOE can supply.

Funny thing, BOE is not only rumored to supply some OLED to Apple but they are also rumored to be in talks with LG Electronics to supply OLED... replacing LG Display.
https://www.oled-info.com/will-lg-electronics-replace-lgd-boe-its-oled-supplier

 

[one more]

Why keep posting about next years iPhones when we haven’t had this year’s yet? One year at a time!

We already know pretty much everything about this year’s line-up - same screens and extra cameras. So jumping to 2020 allows people to plan their upgrades better - perhaps they want an XR-sized phone with an OLED screen (rumoured for 2020) or a smaller sized phone than iPhone XS (also rumoured for 2020).

 

[LIVEFRMNYC]

Samsung is not the only company on this earth to make good oled panels. Good move by “Tim Apple.”

At these prices, the best is wanted, not just good.

 

[jayducharme]

Maybe if Apple asked LG to expand just a little larger, like say an OLED display for a new iPhone SE, they could ease into production of the X displays.

 

[44267547]

Samsung is not the only company on this earth to make good oled panels. Good move by “Tim Apple.”

Samsung was the only OLED supplier to meet Apples needs/quantities for the 2017 X at the time, which is why they chose Samsung. LG allegedly partnered later producing a smaller batch as a secondary iPhone supplier.

 

[69Mustang]

Why keep posting about next years iPhones when we haven’t had this year’s yet? One year at a time!

The rumor mill requires grist... and lots of it.

 

[Closingracer]

Samsung is not the only company on this earth to make good oled panels. Good move by “Tim Apple.”

Errr LG panels are pretty bad .... for mobile displays . Just look at the Pixel 2 and Pixel 2 XL where LG made the XL. That display had issues where the HTC made Pixel 2 which used a Samsung display did not .

 

[PickUrPoison]

Fewer and fewer people are willing to shell out $1000-$1500 for a new phone every year so Tim Apple has to find more and more ways to squeeze every last penny he can to maintain those obscene profit margins. Sure, it's what businesses are supposed to do, but there's a limit to everything. Luxury cars buyers will stop buying your $90,000 if you replace the wood trim with plastic versions. Same thing will end up happening to Apple if they start cheapening out here and there.

When Samsung was the only supplier, Tim Apple was forced to pay a very high price for displays, and that cost was passed on to us customers. But he’ll have the last laugh. Tim Apple is well known to be a supply chain genius. I suspect when LG gets their process nailed, Mr. Apple will dump Samsung.

So BOE and LG will be the two suppliers, and we customers will benefit. Samsung slit their own throat, and it won’t be long until they are completely eliminated as an Apple supplier.

 

[69Mustang]

Maybe if Apple asked LG to expand just a little larger, like say an OLED display for a new iPhone SE, they could ease into production of the X displays.

https://www.oled-info.com/will-lg-electronics-replace-lgd-boe-its-oled-supplier

Rumor has it, LG has issues.

 

[travis64]

Apple please learn to get rid of pwm if you want to make more $$$!!

 

[44267547]

Apple please learn to get rid of pwm if you want to make more $$$!!

Albeit, that is a problem for some, I think that’s a tangent pretty much for any OLED display for those affected. It’s not just Samsungs OLED panels Apple is using, that seems to be prevalent amongst other OLED panels as well. {FTR, there’s a pretty massive thread on the iPhone forum where others are suffering from PWM with Apples LCD displays used on the XR.}

 

[69Mustang]

When Samsung was the only supplier, Tim Apple was forced to pay a very high price for displays, and that cost was passed on to us customers. But he’ll have the last laugh. Tim Apple is well known to be a supply chain genius. I suspect when LG gets their process nailed, Mr. Apple will dump Samsung.

So BOE and LG will be the two suppliers, and we customers will benefit. Samsung slit their own throat, and it won’t be long before Samsung is completely eliminated as an Apple supplier.

I doubt. LG is rumored to be possibly moving to BOE for OLED as well. If true, Samsung ain't going anywhere. Apple ain't trading one single supplier relationship for another single supplier relationship.

 

[nfl46]

Fixed that for you.

Smartphone technology has plateaued - - no one needs to buy a new phone every year.

Plus, if you buy a quality device like an iPhone, which comes with 5 years of OS and security updates, your pro-rated annual cost is very reasonable.

Yep, I’m still rocking a iPhone 7 (September 2016), with a new battery and it’s still solid, even with iOS 13 Beta. I’m not upgrading until 2020.

 

[doncornelius]

Fewer and fewer people are willing to shell out $1000-$1500 for a new phone every year so Tim Apple has to find more and more ways to squeeze every last penny he can to maintain those obscene profit margins. Sure, it's what businesses are supposed to do, but there's a limit to everything. Luxury cars buyers will stop buying your $90,000 if you replace the wood trim with plastic versions. Same thing will end up happening to Apple if they start cheapening out here and there.

Chinese doesn't necessarily mean low-quality. Lower costs could come from lower salaries or higher volumes, etc. Apple still has standards it holds its vendors to.

 

[Sasparilla]

Small correction: LG is South Korean. Japan Display is the only company with Japanese ties and it's essentially owned by Apple and Chinese investors.

Thanks for the details on Japan Display, I had no idea.

 

[Mc0]

Guys, can you relax. Don’t stress on things you can’t control. Let Apple do the QA test and deal with the issues. They will not release a product with crappy screens especially if they want to sell millions of them. If it turns out to be substandard, don’t buy it.

 

[citysnaps]

True. Samsung isn't the only company to make good OLED panels. To date, they have been the only company to make good OLED panels at sufficient volume and quality. We don't know if this is a good move or not because we don't know what volume and quality BOE can supply.

Funny thing, BOE is not only rumored to supply some OLED to Apple but they are also rumored to be in talks with LG Electronics to supply OLED... replacing LG Display.
https://www.oled-info.com/will-lg-electronics-replace-lgd-boe-its-oled-supplier

True. Especially as I doubt anyone here is truly an expert on the subject and can speak with authority on the subject.

But I suspect Apple knows.
[doublepost=1566389567][/doublepost]

Guys, can you relax. Don’t stress on things you can’t control. Let Apple do the QA test and deal with the issues. They will not release a product with crappy screens especially if they want to sell millions of them. If it turns out to be substandard, don’t buy it.

Bingo!