In order to cut costs and reduce its reliance on its suppliers and competitors & Samsung, Samsung has begun to find another way for the next generation of iPhone screens.
On Wednesday, August 21, according to a quote from the First Financial News, Apple is actively testing BOE's flexible OLED screen and will decide whether to use it for the new iPhone before the end of the year. This certification test is now in its final stages.
At present, Apple's OLED screen suppliers are Samsung and LG, two Korean companies, of which Samsung accounts for more than 90% of the global high-end screen market.
If BOE finally gets a flexible screen order from Apple, it will not only be Apple's first purchase of a Chinese-made OLED screen, but also more likely to threaten Samsung's position as an Apple supplier and give Apple more bargaining power.
The OLED screen is the most expensive part of an iPhone. Of the cost of Apple's first OLED phone, the iPhone X $370, the screen accounted for $110, a ratio close to 30%. Some media quoted people familiar with the matter, compared with Samsung's screen, the price of flexible screen produced by BOE is about 20% lower.
Since the end of 2017, BOE has started to produce flexible screens. It has already put into production or planned four 6th generation flexible AMOLED production lines and supplied flexible AMOLED displays for Huawei Mate X mobile phones.
In the view of Southwest Securities, Japan has restricted OLED key materials to South Korea. As the largest OLED production country outside Korea, China's domestic panel makers are expected to benefit.
In early July, Japan launched export control of three kinds of semiconductor and panel important raw materials such as fluoropolyimide, high-purity hydrogen fluoride and photoresist, and Japan currently controls 70%-90% of the market share of three materials. The display panel industry is highly dependent on Japan.
If South Korea cannot find alternatives in the short term, it may affect South Korea's OLED production capacity. China is the largest OLED production country outside South Korea, and domestic panel makers are expected to benefit.