IT House May 4 news, according to The Elec, Apple has actually removed Chinese display maker BOE from the iPhone 13 supply chain after discovering design changes to its OLED panels.
BOE has been supplying OLED display panels for the 6.1-inch iPhone models since last year, but since February the company has only produced a “small amount” of OLED panels for the iPhone, The Elec reported. Panel production is said to have “fallen significantly over the past four months”.
The initial reason for the decline was a shortage of display driver integrated circuits (ICs), as IC supplier LX Semin prioritized orders from LG Display. More importantly, according to reports,BOE changes the design of its OLED panels by expanding the circuit width of thin-film transistors. The Elec claims that when Apple discovered the change, it told BOE to stop production.
Still, BOE is unlikely to be completely excluded from Apple’s OLED panel supply chain, as its presence puts pressure on Samsung Display and LG Display to improve competitiveness and cut prices. BOE’s factory in Sichuan is said to be still operating, and BOE may be currently working on a workaround to meet Apple’s demands.
BOE’s two factories in China, which make OLED panels for the iPhone 12 and iPhone 13, will account for only 10% of all iPhone displays by 2021, but the company has been planning a massive expansion to surpass LG Display as Apple’s 2023 One of the major suppliers of iPhone in 2019.
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