In a bid to become the third organic light-emitting display (OLED) supplier for Apple’s iPhone in 2021 along with Samsung Display and LG Display, BOE, the biggest display maker in China, has started investing in a plant to supply OLEDs to Apple.
According to the industry, BOE recently decided to invest in OLED module lines exclusively for Apple. It is heard that BOE is planning to construct 10 new module lines at its B11 OLED plant located in Sichuan. Module line is where many components are assembled so that a display panel can be attached to finished products such as smartphone. It is expected that BOE will have an entire assembly line from panel to module as it has Gen 6 flexible OLED fab at B11 plant.
BOE has consistently been making attempts to supply its OLEDs to Apple. Along with the construction of B11 plant, it has been participating in projects for development of OLEDs for iPhones. However, it has yet to supply its OLEDs as its OLED has not satisfied Apple’s strict quality evaluation.
BOE’s decision to invest in module lines does not indicate that BOE has signed a contract with Apple. It will be able to supply OLEDs once it passes Apple’s strict evaluation. The reason why BOE’s recent investment is still drawing interests is because its investment is a follow-up decision from its recent communication with Apple.
“We heard that Apple recently asked BOE to make necessary preparations regarding supply of OLEDs.” said multiple representatives from the industry who are familiar with BOE’s situation.
MacDailyNews Take: Hopefully BOE’s bid to supply OLED’s for Apple’s iPhone will go well. Such a deal would be good for both BOE and Apple as the current dependence on Samsung Display for iPhone OLEDs gives Apple no leverage on component pricing. Competition, as always, is the key here. The more quality OLED suppliers Apple can get into their supply chain, the better!
Which is why coporate comsolidation is bad; The reduction in competition reduces incentive to increase product quality and reduced the power of the consumer to shop for a better service.