Apple has signed a deal with Chinese display manufacturer BOE for OLED displays, allowing the manufacturer to supply components for the upcoming iPhone 14, according to a new report.
Apple signs deal with BOE for OLED displays
The contract, worth CNY50 million ($7.75 million), is for BOE to provide displays intended for use in the standard iPhone 14 model. As per the report, BOE will provide a quarter of the display panels to the supply chain.
The supply will only involve 6.1-inch OLED panels, which are used in the standard iPhone 14 model notes GSM Arena. This means that displays for other models including the larger “iPhone 14 Max” and Pro variants will continue to be equipped with screens manufactured by Samsung and LG.
The manufacturer being added to Apple’s display supply chain for the iPhone 14 is a big feat as it had previously tried to join the iPhone suppliers list for current-generation models for quite some time now. BOE has previously supplied displays for Apple but only replacement units for earlier iPhone models.
While this is a huge win for the manufacturer, recent reports suggest BOE is facing production problems with OLED panels for iPhones due to the ongoing global chip shortage as well as major disruptions due to recent lockdowns in China.
The manufacturer’s production volume for OLED panels had dropped since February due to the shortage is display driver ICs but its supply position has worsened as the yield rate for the panels also seems to be an issue. Production problems are expected to continue affecting BOE well into May.
BOE was initially expected to supply 40 million units of OLED panels for iPhones this year but the shortage of display driver chips has reduced the goal to 30 million units. However, reports say the goal of 30 million units is unlikely to be met if the situation continues as is and the company is continually hit with production issues.