TechCapsules

AI-summarised brief · reviewed before publication

In an effort to increase its share of iPhone screen orders from Apple, display supplier BOE has significantly expanded its OLED panel production capacity. Historically, Samsung Display and LG Display have dominated the display supply chain for iPhones, with BOE playing a relatively minor role. However, BOE is determined to become a major player and has invested in expanding its production capacity to achieve this goal. According to the China Display Trend Report from UBI Research, BOE has successfully constructed an annual production capacity of 100 million OLED panels for iPhones. This capacity consists of 26 module lines dedicated to Apple, including 11 lines for mass production and three for module development. BOE has also worked to optimize its manufacturing process, reducing the assembly time per panel to 5.5 seconds. Each line is capable of producing up to 350,000 units per month. The B11 lines, in particular, can produce up to 8 million or 9 million panels per month, amounting to a total of around 100 million panels per year based on a 90% utilization rate and an 85% yield. While BOE's expansion efforts are ambitious, the company's current requirements from Apple are relatively modest. Despite being a current supplier, BOE's orders from Apple are significantly lower than those of Samsung and LG, the two main display makers that Apple relies on for its products. BOE has faced issues in the past, including a 2022 incident where it was caught changing Apple's specifications for displays, prompting Apple to cut orders. More recently, in 2023, BOE failed to meet Apple's standards for iPad OLED display suppliers. Current estimates suggest that BOE's shipments to Apple in the second half of 2025 are expected to reach 24 million panels, with a total value of approximately $3.6 billion.