Samsung Displays is poised to benefit from an ongoing production setback at BOE. The Chinese display manufacturer has reportedly failed to meet Apple’s technical requirements for supplying OLED panels for the latest iPhones. Since BOE is unable to resolve the issues, Apple has increased the iPhone 17 display orders from Samsung. This move also reinforces Samsung’s role as the company’s most reliable display partner.
Samsung might produce iPhone 17 displays
Apple is reportedly planning to ship than 90 million iPhone 17 units across its four models. And since panels play an important role, the firm might fail to meet the target. Samsung currently provides OLED panels for every model, while LG covers three, leaving BOE with an opportunity to expand its presence by targeting the iPhone 17 Pro in China. Apple’s decision to use LTPO panels across all models surged the demand. While BOE was approved earlier for mass production, it has failed to deliver the target due to technical hurdles.
Throughout the fall, BOE tried its best to resolve the production issues. However, its inability to solve the issue reduced confidence in meeting Apple’s standards at scale. The firm had planned to ship up to 10 million units initially, with long-term shipment expectations reaching 40 million, but those targets are no longer feasible. Even by mid-November, the firm is unable to address the problems. This has left Apple with limited options as production deadlines are approaching.
BOE’s inability gives Samsung a chance to strengthen its market position
To cover up the shortfall created by BOE, Samsung is stepping in. The Korean tech giant has now increased its shipments from an estimated 80 million units to about 90 million for the year. The volume has been increased so that Apple can maintain its production schedule for all iPhone 17 models without risking delays.
Samsung’s long experience with the manufacturing of LTPO panels makes it well-positioned to absorb the extra demand quickly. The situation also solidifies the company’s position premium OLED market.
