Apple iPhone 17 OLED Shipments Expected to Hit 113 Million Units from Samsung and LG, While Chinese Manufacturer BOE Contributes Less Than Half

For years, Apple has relied on trusted suppliers like Samsung and LG to fulfill its iPhone display orders, particularly for OLED panels. In contrast, BOE, a Chinese display maker, frequently encounters manufacturing and quality control challenges that hinder its ability to secure a stable position in Apple’s supply chain. However, with the impending U. S.tariffs on the iPhone 17—potentially adding an extra 25% cost for units not manufactured domestically—Apple’s decision to incorporate a third manufacturer appears strategically sound. Yet, current data shows that BOE is responsible for less than half of the total estimated OLED shipments from Samsung and LG, who are expected to deliver approximately 113 million units this fiscal year.

BOE Faces Pressure to Enhance Quality and Production for iPhone 17

Despite BOE’s capacity to produce up to 100 million iPhone OLED panels annually, recent findings reveal that only 11 out of its 26 dedicated production lines are operational. According to DealSite, each active line can generate approximately 350, 000 units monthly, positioning BOE to supply around 45 million LTPO OLED panels to Apple this year.

The reasons behind the limited operation of BOE’s production lines remain unclear, but it may relate to Apple’s stringent quality standards. To meet these requirements, BOE might be prioritizing smaller production runs to minimize defects, which would ultimately help reduce annual losses. In comparison, Samsung is poised to deliver an estimated 70 million panels, while LG is set to provide 43 million units, collectively contributing to the anticipated shipment total of 113 million panels for the period.

An anonymous industry insider has noted that it’s a noteworthy achievement for BOE to receive approval from Apple to manufacture iPhone 17 panels, albeit in lower quantities. This development could cause some concern for Samsung and LG, as highlighted by the tipster @Jukanlosreve, who suggested that there may be suspicions among Korean manufacturers regarding Apple potentially passing proprietary OLED technologies to its Chinese partner.

“The fact that BOE has received quality certification from Apple, even if only in small quantities, shows that BOE’s technology has advanced compared to before. The technology gap between Korea and China will only narrow in the future. There are also suspicions that Apple is secretly transferring OLED technology to BOE, which is making Korean companies uncomfortable. The recent string of patent lawsuits is not unrelated.”

Despite these complexities, Apple has compelling reasons to continue its partnership with BOE. With fierce competition from domestic brands like Huawei in the Chinese market, having a display manufacturer capable of local production can significantly reduce component costs for the iPhone 17. This localized approach may allow Apple to enjoy higher profit margins per device sold within China, the world’s largest smartphone market by volume. Consequently, all companies involved in the production process are likely to gain advantages.

Source: DealSite

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