The supply chain for Apple’s iPhone displays is predominantly controlled by Samsung Display and LG Display, with BOE operating as a much smaller supplier. However, BOE is striving to increase its market presence by expanding its production capacity, hoping to attract Apple’s business. A report from UBI Research, titled the China Display Trend Report, reveals that BOE has reached an impressive annual production capacity of 100 million OLED panels specifically for iPhones.
Currently, BOE operates 26 module lines for Apple, including 11 dedicated to mass production and three for module development. Notably, the company has succeeded in reducing the assembly time per panel to just 5.5 seconds, enabling each line to produce up to 350,000 units monthly. The B11 lines have the capacity to manufacture between 8 to 9 million panels annually, calculated based on a 90% utilization rate and an 85% yield, although this is slightly less efficient than Samsung’s metrics.
Despite being a supplier for Apple, BOE has faced challenges. In 2022, the company was caught altering Apple’s display specifications, leading to a reduction in orders. Additionally, in 2023, BOE was unable to qualify for the iPad OLED supply chain.
Present estimates suggest that BOE’s shipments to Apple could reach 24 million panels in the second half of this year, totaling around 45 million for the entire year. BOE is eager to secure more orders from Apple, particularly for the upcoming iPhone 17 series. However, meeting Apple’s high standards poses a significant challenge, as BOE currently lacks the expertise that Samsung and LG possess.
It remains uncertain whether BOE will fully utilize its production lines specific to Apple, making the outcome a gamble for the company.