Samsung is poised to achieve a significant victory in an infringement case against the Chinese display manufacturer BOE, which could have serious implications for Apple’s upcoming iPhone 17e. The ITC (International Trade Commission) has issued a ruling confirming that BOE has violated Samsung Display’s trade secrets. Consequently, new restrictions will prevent BOE from importing any products containing its display panels into the United States. This ruling poses a considerable challenge for Apple, Samsung’s primary competitor in the smartphone market.
For years, Apple has relied on BOE for its budget display options, specifically in devices like the iPhone 16e. With the iPhone 17e likely intended to utilize BOE panels, Apple’s plans may now be severely affected, resulting in a likely increase in production costs and, subsequently, retail prices for consumers. Additionally, BOE had recently made significant strides with Apple by winning a contract to produce displays for the iPhone 17 targeted at the Chinese market. However, BOE had previously struggled to meet Apple’s quality standards and was at risk of losing its orders altogether.
Although the ITC’s ruling may not directly impact devices produced for China, it complicates BOE’s future business dealings with Apple. Moreover, Apple has been working towards shifting its display sourcing entirely to BOE to reduce manufacturing costs. BOE’s displays are generally more affordable compared to those offered by Samsung Display and LG Display. However, issues within BOE’s production processes have hindered this transition, raising questions about the company’s ability to compete effectively in the industry.
The recent ITC ruling may present a significant setback for BOE, potentially jeopardizing its future partnerships and business viability.