Apple has been trying to reduce the production cost of its iPhones for some time now. To achieve this, they have tried to turn to alternative suppliers for certain key components, such as displays. However, a new move by the US government could put Apple’s plans in jeopardy. A US representative requested that display suppliers from China, such as BOE and Tianma, be blacklisted. BOE would be the main OLED display supplier of the iPhone SE 4.
BOE is a Chinese display supplier that works with multiple big brands in the smartphone industry. Apple has been in talks with the company to use its panels in iPhone devices. According to reports, BOE has failed Apple’s quality tests for high-end iPhone displays, but the Cupertino giant would commission them to produce the majority of the iPhone SE 4’s displays.
US representative suggests blacklisting display suppliers from China
Apple may have to reconsider its plans regarding the displays of the next budget iPhone following a request from John Moolenaar, the Chairman of the House Select Committee on the Chinese Communist Party. Moolenaar requests the addition of BOE to the US trade blacklist in a letter to Defense Secretary Lloyd Austin. The letter also mentions Tianma Microelectronics, another Chinese display supplier.
The representative cites national security concerns as the main reason for the BOE’s potential blacklisting. The letter cites Chinese suppliers’ outsized market share growth in the LCD and OLED segment thanks to Chinese government funding. These suppliers have gone from 1% of the global OLED market share in 2014 to more than 52% today. They have also taken over 72% of the LCD market. Chinese suppliers have reportedly taken advantage of government funding to sell displays at cost, affecting competitors.
Previous reports suggested that BOE would manufacture 70% of the iPhone SE 4’s displays. Samsung was among the companies vying to supply the component. However, the deal fell through because Apple was willing to pay too little per unit. Indeed, reports suggest that Apple requested BOE to reduce the specifications of the “display candidate” to secure a lower price. There are no details on which specs would be reduced to save costs. However, we can imagine things like maximum brightness or resorting to older OLED technologies.
LG would be another candidate for the iPhone SE 4’s OLED screens
According to reports, Apple has also negotiated with LG to supply the displays for the iPhone SE 4. Reports suggest that the company is seeking to pay a maximum price of $40 per unit. The iPhone SE 4 would hit the market in 2025 for a price of $499. The possibility of a BOE blacklisting would force Apple to turn to more expensive suppliers, potentially increasing the estimated price for the next-generation budget iPhone.
