BOE Increases Production Capacity to Secure iPhone Orders Amid Rising Competition

After facing challenges in entering Apple’s display supply chain, BOE, a display supplier, has significantly expanded its OLED panel production capabilities in an attempt to secure additional orders for iPhone screens. Traditionally, the iPhone display market has been dominated by Samsung Display and LG Display, leaving BOE as a relatively minor player. Nevertheless, BOE aims to become a significant supplier and has ramped up its production capacity to attract Apple’s business.

According to the China Display Trend Report from UBI Research, BOE has successfully established a yearly production capacity of 100 million OLED panels specifically for iPhones. This capacity includes 26 module lines dedicated to Apple, with 11 lines set for mass production and three focused on module development. Additionally, BOE has managed to reduce the assembly time for each panel to an impressive 5.5 seconds, leading to production capabilities of up to 350,000 units a month across each line.

Notably, its B11 lines are estimated to produce 8 to 9 million panels monthly, aligning with the forecasted total of 100 million panels annually, based on a 90% utilization rate and an 85% yield. While BOE’s ambitions are commendable, its current orders from Apple are modest compared to the larger suppliers. Despite being an existing supplier, BOE has faced several hurdles, including an incident in 2022 where it altered Apple’s display specifications, resulting in a reduction of orders.

Furthermore, BOE’s attempt to enter Apple’s iPad OLED display supply chain in 2023 proved unsuccessful. Boasting ambitions for future collaborations, BOE is projected to ship around 24 million panels to Apple in the latter half of 2025, with a total of 45 million panels for the year. The company is eager to secure orders for the iPhone 17 series alongside its competitors, Samsung and LG.

However, meeting Apple’s stringent quality standards will be a significant challenge, as BOE continues to work on enhancing its technological capabilities to catch up with its rivals. If successful, BOE could finally achieve full utilization of its production lines dedicated to Apple.