Apple Taps Chinese Firm BOE for iPhone 17 OLED Displays Amid Tariff Concerns
Posted by New Case on 28th Jul 2025
Apple is reportedly set to diversify its iPhone 17 display supply chain by increasing orders with Chinese manufacturer BOE, a move driven by potential U.S. tariffs and competitive pressures in China. This marks a significant step for BOE, which has historically struggled to meet Apple's stringent quality standards.
BOE's Growing Role in iPhone Displays
While Samsung Display and LG Display have long dominated Apple's OLED panel supply, BOE is poised to play a more substantial role in the upcoming iPhone 17 lineup. For the first time, all four iPhone 17 models are expected to feature LTPO OLED screens, with BOE securing a portion of these orders. This strategic decision is largely influenced by the looming threat of significant U.S. tariffs on imported electronics, potentially impacting iPhones not manufactured within the United States.
- Key Takeaways:
- Apple is increasing its reliance on BOE for iPhone 17 OLED panels.
- This move is driven by geopolitical risks, specifically potential U.S. tariffs.
- BOE's role is expanding to include LTPO OLED panels for all iPhone 17 models.
- Concerns remain about BOE's ability to consistently meet Apple's quality standards.
Navigating Geopolitical and Market Pressures
The potential reimposition of tariffs, which could reach 25%, presents a substantial financial risk for Apple. By sourcing more components, such as OLED displays, from within China, Apple aims to mitigate the impact of these tariffs on devices sold in the crucial Chinese market. Furthermore, the intensifying competition from domestic brands like Huawei in China necessitates strengthening local partnerships and optimising cost structures.
BOE's Capacity and Quality Challenges
Despite possessing the theoretical capacity to produce 100 million iPhone OLED panels annually, BOE's operational reality is more constrained. Currently, only 11 of its 26 dedicated production lines are active, with an estimated output of 45 million LTPO OLED panels for Apple in 2024. This cautious scaling is seen as a necessary measure to manage yield rates and minimise defects, essential for meeting Apple's exacting quality benchmarks. In comparison, Samsung is projected to supply 70 million panels and LG 43 million.
Concerns and Future Outlook
There are underlying suspicions from established South Korean suppliers, Samsung and LG, that Apple might be transferring OLED technology to BOE, potentially exacerbated by ongoing patent disputes. While BOE's technological advancements are acknowledged, with industry sources noting progress in meeting Apple's quality certifications, the historical gap in manufacturing consistency compared to Korean counterparts remains a point of attention. Apple's increased engagement with BOE represents a high-stakes balancing act, aiming for supply chain resilience and cost management amidst a complex geopolitical and competitive landscape.