The iPhone 15 lineup is set to bring exciting changes, but Apple supplier BOE is encountering difficulties in expanding OLED supply. Light leakage issues on the OLED panels have resulted in lower yields and potential impacts on overall supply. In this article, we delve into the challenges faced by BOE and the potential consequences for the iPhone 15 lineup.
BOE’s OLED Supply Challenges
BOE, one of Apple’s suppliers, is currently facing challenges in expanding the OLED supply for the highly anticipated iPhone 15. The company has encountered light leakage issues on its OLED panels, resulting in lower yields and potential impacts on the overall supply.
The implementation of Dynamic Island on all iPhone 15 models has posed difficulties for BOE, specifically on the panels for the standard models. The light leakage issue revolves around the Dynamic Island, which includes the hole punch and the pill-shaped cutout for the TrueDepth camera sensor.
These challenges have led to lower production yields and the cancellation of orders from Apple. BOE’s inability to meet Apple’s production standards has put its position as a supplier at risk, potentially leading to the loss of a significant client and revenue.
Impact on iPhone 15 Supply
The OLED supply challenges faced by BOE could have significant consequences for the overall availability of the iPhone 15. With lower yields and potential production delays, the supply of iPhone 15 units may be affected.
However, Apple has a backup plan in place. Samsung, another major OLED panel supplier, currently holds a dominant market share. With a 91 percent market share from June to August, Samsung’s efficiency and capacity can help mitigate the impact of BOE’s supply challenges.
While BOE works to address the light leakage issues and improve production yields, Apple will likely rely more heavily on Samsung for the OLED panels in the iPhone 15 lineup. This strategic move ensures that the demand for the iPhone 15 can still be met, albeit with potential adjustments in the supply chain.
BOE’s Future as an Apple Supplier
The OLED supply challenges faced by BOE not only impact the iPhone 15 but also raise questions about the company’s future as an Apple supplier. With the cancellation of orders and the inability to meet Apple’s production standards, BOE’s position is at risk.
If BOE fails to address the light leakage issues and improve production yields, Apple may decide to sever ties with the supplier. Losing Apple as a client would have significant financial implications for BOE, considering the strong sales performance of the iPhone compared to other smartphones.
BOE needs to prioritize resolving the OLED supply challenges to maintain its position as an Apple supplier and secure future revenue streams. The company’s ability to meet Apple’s production standards and deliver high-quality OLED panels will be crucial in determining its future partnership with the tech giant.
