Apple Supplier BOE Could Be Frozen Out of Supply Chain for iPhone 14 OLED Panels

[MacRumors]

Apple supplier BOE is still waiting to receive approval from Apple to manufacture OLED panels for the upcoming iPhone 14 series, after the company was found to have made design changes without Apple's approval (via The Elec).

Earlier this month, Apple cut the Chinese display manufacturer out of the iPhone 13 supply chain after it was found to have changed the design of its OLED panels by expanding the circuit width of thin-film transistors.

The change was likely made in a bid to increase the yield rate, according to The Elec's sources, but when Apple discovered what had been done, it told BOE to halt production immediately. As a direct result, BOE is said to have not received any orders from Apple for OLED panels for the iPhone 14.

The latest report claims BOE visited Cupertino to explain why it unilaterally made the circuit design changes, but it appears the explanation didn't wash with Apple, which is now considering giving the order originally intended for BOE to Samsung and LG instead.

The Chinese display panel sent a C-level executive and employees to Apple’s headquarters following the incident to explain why they changed the circuit width of the transistors.

They also asked the iPhone maker to approve the production of OLED panels for iPhone 14, but didn’t receive a clear response from Apple, they also said.

Cupertino seems poised to give the order for around 30 million OLED panels it intended to give BOE before the incident to Samsung Display and LG Display instead.

Apple is said to want over 150 million OLED panels for the iPhone 14 series, up from the 140 million units it originally intended to order. Display panel makers will likely begin production next month at the earliest, with Samsung expected to manufacture the panels for the 6.1-inch and 6.7-inch iPhone 14 Pro models and LG expected to supply the panels for the 6.7-inch iPhone 14 Pro Max.

BOE has manufactured OLED panels for the iPhone 12 and ‌iPhone 13‌ at two factories in China, accounting for just 10 percent of all ‌iPhone‌ displays in 2021, but the company had been planning a significant expansion to overtake LG Display as one of Apple's main suppliers of ‌iPhone‌ displays in 2023.

Article Link: Apple Supplier BOE Could Be Frozen Out of Supply Chain for iPhone 14 OLED Panels

 

[bumblebritches5]

Jeez, the Chinese even gyp Apple of all customers

 

[Sheepish-Lord]

Good. Making design changes is what leads to panel differences, increases potential returns/repairs, damages the brand, etc. Apple already has yearly “gates” for every product so last thing you need is a supplier changing design elements. Would rather have Samsung or LG panels anyway.

 

[tuckerjj]

FAFO

 

[loby]

Probably “design changes” so they don’t have to modify their production line to save costs, but they “cut” themselves out of the job. No liberty to make design changes without approval. Probably they tried to get away with it and Apple’s QA caught the change. Big “No No”.

 

[BootsWalking]

How would BOE feel if one of their suppliers changed an important component they themselves use in the displays they're making for Apple?

Making complex devices is hard enough without your suppliers changing designs and not letting you know.

 

[Whathappened]

Probably “design changes” so they don’t have to modify their production line to save costs, but they “cut” themselves out of the job. No liberty to make design changes without approval. Probably they tried to get away with it and Apple’s QA caught the change. Big “No No”.

That’s what the article says.

 

[codehound]

C level! Donkeys

 

[DCIFRTHS]

I’m curious if any of the “inferior” panels made it into the wild, and are in customers hands??

 

[EdwardC]

For an interesting take on the way things really work in China one should look at the channel Adv China on YouTube. I’ve really learned a lot about the culture and the way things are done there from the two hosts of this excellent channel.

Regards…

 

[syklee26]

Looks like Korean displays for iPhone 14, which should be good news for those looking to buy one.

 

[0194839]

I’m glad I’m buying the 14 Pro. Samsung is a great if not the best mobile display manufacturer in the world. Good quality displays.

 

[tridley68]

Good no make no changes without prior approval

 

[Lexdexia]

I hope Apple cuts them off, deviating from your original contract agreement is not good compliance and will lead to more problems down the road with this supplier.

 

[iosfan1991]

That’s what the article says.

You must have read a different article. The macrumors article does not speculate on the reason for the change being "to save costs" (it may have actually increased costs if it uses more material) nor does it state that the change was "caught by the apple QA team" rather than being informed by the company themselves. You made assumptions beyond the facts.

 

[Corsig]

once again stop using china for production and diversify in other areas

 

[TheYayAreaLiving 🎗️]

I really hope BOE is serious and got everything together. Apple does not play.

 

[HiVolt]

You cheat, you lose. No sympathy here. Hope its another sign to Apple that the need to move production and supply chains out of China is a necessary thing.

 

[DJJAZZYJET]

I’d rather a Samsung panel anyway ?

 

[Robert.Walter]

SIGNAL EFFECT: Companies that do this need to suffer a dramatic cut in orders to learn their lessons. Else they and others will do more of this.

 

[justperry]

Good. Making design changes is what leads to panel differences, increases potential returns/repairs, damages the brand, etc. Apple already has yearly “gates” for every product so last thing you need is a supplier changing design elements. Would rather have Samsung or LG panels anyway.

Provide evidence that it increases potential returns/repairs, it might be actually completely the other way around, increasing sizes might lead to less repairs/returns.

But...I aint no engineer (either), I am but not in this field, you assume that is the case while that might not be true.

 

[jav6454]

Good and let it be a lesson. This is a general manufacturing rule. Never alter your customer's design without prior approval.

 

[switz]

Sending "C" level staff was a slap in the face to Apple. Their head honcho should have been there on bended knee. No more orders from Apple will be a teaching lesson to the other scheming off shore folks that there is a severe penalty for not making the product as specified.

Just look at the status of Boeing for not making the "MAX" a safe aircraft. A cheap shot was not making a second angle of attack device standard on a multi million dollar plane. Those two crashes had just one angle of attack device so there was no way to verify flights data.

 

[anthogag]

BOE got approval from China's government to make the changes. ?

 

[AF_APPLETALK]

Sending "C" level staff was a slap in the face to Apple. Their head honcho should have been there on bended knee. No more orders from Apple will be a teaching lesson to the other scheming off shore folks that there is a severe penalty for not making the product as specified.

Just look at the status of Boeing for not making the "MAX" a safe aircraft. A cheap shot was not making a second angle of attack device standard on a multi million dollar plane. Those two crashes had just one angle of attack device so there was no way to verify flights data.

"C level" means "C suite"

The "c suite" compromises of all of those people with titles like CEO, CFO, CMO, COO, etc...