Major iPhone Display Supplier to Build $250 Million OLED Factory in Vietnam

[Mr. Dee]

Is there really that much demand predicted for the iPhone in the future though? I would think, with people keeping their existing devices longer, not much innovation being introduced on the hardware side (most of it happens in the software which is actually what's expected). I would think the existing manufacturing and supply chain infrastructure in China and elsewhere would be sufficient enough to produce whatever the market demands. Keep in mind, the market already chose Android devices in its many varieties anyway.

Don't get me wrong, I can understand diversification, but its the idea of building out more infrastructure in a market thats more likely contracting.

 

[Obioban]

Is there really that much demand predicted for the iPhone in the future though? I would think, with people keeping their existing devices longer, not much innovation being introduced on the hardware side (most of it happens in the software which is actually what's expected). I would think the existing manufacturing and supply chain infrastructure in China and elsewhere would be sufficient enough to produce whatever the market demands. Keep in mind, the market already chose Android devices in its many varieties anyway.

Don't get me wrong, I can understand diversification, but its the idea of building out more infrastructure in a market thats more likely contracting.

iPhone sales continue to increase.

If the ability to produce in China ends, recreating the ability to make 200,000,000+ phone/year is going to... not happen overnight.

Also not sure what you meant by, "Keep in mind, the market already chose Android devices in its many varieties anyway.". iOS marketshare has increased every year since 2016.

 

[_Spinn_]

Yay for moving out of China! This is an interesting move considering the rumors of Apple moving towards their own microLED displays in the future.

 

[Mr. Dee]

iPhone sales continue to increase.

If the ability to produce in China ends, recreating the ability to make 200,000,000+ phone/year is going to... not happen overnight.

Also not sure what you meant by, "Keep in mind, the market already chose Android devices in its many varieties anyway.". iOS marketshare has increased every year since 2016.

Android devices amount to 3 billion
iOS devices are about 1.5 billion.

The last time I read any stats, Android was over 2 billion and Apple was at 1.2 billion.

I remember when Tim Cook held up a rose pink iPhone 7 in front of employees to announce they had sold the billionth iPhone. The fact that was 5 years ago shows that the market for iPhones are not growing substantially. Yes, people are upgrading older devices and user base remains loyal. But its not finding new markets or seeing substantial amount of switchers. Also, revenue growth is coming from more expensive devices.

Apple might be changing that which is what has led to the huge sprawl of SKUs.

 

[Obioban]

Android devices amount to 3 billion
iOS devices are about 1.5 billion.

The last time I read any stats, Android was over 2 billion and Apple was at 1.2 billion.

I remember when Tim Cook held up a rose pink iPhone 7 in front of employees to announce they had sold the billionth iPhone. The fact that was 5 years ago shows that the market for iPhones are not growing substantially. Yes, people are upgrading older devices and user base remains loyal. But its not finding new markets or seeing substantial amount of switchers. Also, revenue growth is coming from more expensive devices.

Apple might be changing that which is what has led to the huge sprawl of SKUs.

The iPhone is the largest and most profitable consumer product in history. Apple's marketshare (not revenue share) of phones has been increasing since 2016. If you look at Apple's marketshare at the price points in which they compete, they are the majority of the global market-- they aren't the majority overall because they don't compete in the $50-$300 phone market, which makes up the majority of global sales.

Your question of, "is there really that much demand predicted for the iPhone in the future though?" is silly.

 

[wankey]

This comment has merit. India is a very complex and corrupt country including structural human rights violations. But since the last pandemic everybody has to hate on China. I’m not a fan of both countries as they undeniably run sweatshops to assemble our beloved iPhones. Apple should move away from sweatshops. They care about the environment, they care about the gay community but don’t seem to care much about ill-treated Asian people who are forced to work in crowded with very poor, socially unacceptable or illegal working conditions. But hey, who cares right?

People keep thinking corporations are entities for good.

The first thing they taught me in business class was "You are in business for MAKE A PROFIT" and the teacher made us repeat it.

These companies are in business to make money, not lose money. They tell you they are green, they are good, and they are modern so YOU give them 20-40% markups on their prices.

We are the fools here, Apple is just a entity that does it well.

China isn't bad, Vietnam isn't bad, India isn't bad. Capitalism just goes to these countries to exploit their cheap labor to companies like Apple make most PROFIT. That's all there is to it.

China, Vietnam and India will gain power over the years through this, and then become a threat to the united states.

Then we will suddenly see an influx of Vietnam's and India's horrendous human rights issues and how we need to sanction them.

I know because I grew up in the cold war, nothing said about China wasn't said about the Soviet Union or the middle east or Saddam or Iran or XYZ country. It's the same tactic, it's just effective because young people don't know or remember the last target.

 

[Mousse]

BOE intends to complete all of the building work by 2025.

Wow. A building a complete factory in under 2 years. I'm seeing a lot of corner cutting happening for this to happen. The lack of building code and code enforcement makes me shudder.😨 A few years back, I read about a newly constructed building in Shanghai that toppled over.😱

 

[tongxinshe]

This comment has merit. India is a very complex and corrupt country including structural human rights violations. But since the last pandemic everybody has to hate on China. I’m not a fan of both countries as they undeniably run sweatshops to assemble our beloved iPhones. Apple should move away from sweatshops. They care about the environment, they care about the gay community but don’t seem to care much about ill-treated Asian people who are forced to work in crowded with very poor, socially unacceptable or illegal working conditions. But hey, who cares right?

Do you suggest the way to care about those people in the poor regions, is to not provide any work to them?

 

[ackmondual]

Is there really that much demand predicted for the iPhone in the future though? I would think, with people keeping their existing devices longer, not much innovation being introduced on the hardware side (most of it happens in the software which is actually what's expected). I would think the existing manufacturing and supply chain infrastructure in China and elsewhere would be sufficient enough to produce whatever the market demands. Keep in mind, the market already chose Android devices in its many varieties anyway.

Don't get me wrong, I can understand diversification, but its the idea of building out more infrastructure in a market thats more likely contracting.

My demand for phones is low, but I would like to get them when I can. I can use a phone for 2 to 6 years. When it comes time to get a new one, I would like to not deal with shortages. This is more so devastating when I can no longer use my own phone (FWIW, I've never broken any of my phones to the point where they wouldn't work). I'd hate to be caught up on travel or be without extended moments without it since it's also something I use at work (even if indirectly)

 

[Mr. Dee]

The iPhone is the largest and most profitable consumer product in history. Apple's marketshare (not revenue share) of phones has been increasing since 2016. If you look at Apple's marketshare at the price points in which they compete, they are the majority of the global market-- they aren't the majority overall because they don't compete in the $50-$300 phone market, which makes up the majority of global sales.

Your question of, "is there really that much demand predicted for the iPhone in the future though?" is silly.

Its not silly in comparison to the overall market. Apple is stagnant or shrinking. But like clearly stated, they are making money in the high end which is a tiny fraction of a market. Its a good place to be in, but also a bad one. Because you buy a $1,200 phone you are gonna keep it much longer.

 

[svish]

Great to see the factory coming up outside China.

 

[theorist9]

OMG! Dozens of hectares? 😂

Eh? The 50 hectares set aside for BOL's Vietnamese OLED plant is 500,000 square meters, and that's plenty big. By comparison, LG's nine-level OLED plant in Guangzhou is on 74,000 square meters of land, and has 427,000 square meters of floor space.

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[The Game 161]

like they are trying to get as much money saved as possible to produce it themselves.

 

[xybradley]

How shameless BOE is. A government-owned company, BOE, is competing with private companies like Samsung & LG and also step into a foreign land for factory to affect other countries' economy? Apple shouldn't be an accomplice for such a shameless move.

 

[duck apple]

So a 250m factory for apple to drop oled and supposedly manufacture their own micro led screens later in China.

I heard R&D of Micro LED is in Taiwan and possibly will be manufactured there also.