A recent report by Korean media outlet Money Today has revealed Apple’s unsuccessful attempt to procure 2 million OLED panels from China’s BOE. The deal was canceled due to concerns over the quality of the panels. This move by Apple has sparked a sense of urgency within China’s display industry, as major players like Apple are becoming increasingly skeptical of Chinese panels.
The report suggests that the Chinese display industry is launching attacks on Korean competitors in an attempt to gain an advantage in both competition and legal disputes, while also masking domestic industry challenges. To remain competitive, stakeholders in the Chinese display industry emphasize the need to enhance production capacity, with a focus on producing premium products.
BOE, the Chinese display manufacturer, has expressed discomfort with the Korean industry and media, which has been partly triggered by legal disputes with Samsung Display over patent infringement claims. Despite claims of supply chain reorganization, BOE maintains that its partnerships are progressing smoothly.
The article highlights the intensifying offensive from Chinese companies in the display sector as they strive to secure customers and catch up with their Korean counterparts. While Chinese firms may lack technological prowess, they resort to aggressive tactics, which has prompted concerns within the industry.
Calls for bolstering OLED competitiveness resonate within the Korean industry, given China’s growing market share and production capabilities. However, quality issues persist among Chinese companies, as seen with BOE’s terminated contract with Apple and Tienma’s struggles with AMOLED panel quality.
Amidst these challenges, some advocate for strengthening cooperative relationships with customers to outpace Chinese competitors. Samsung Display and LG Display, for example, have secured partnerships with major tech players, positioning themselves as reliable alternatives.
Apple’s preference for Samsung and LG displays underscores the high standards set by the tech giant, leaving Chinese companies striving to meet these benchmarks. As discussions around the upcoming iPhone 16 series unfold, it appears that Apple will continue to rely on Samsung and LG for OLED screens, given their track record of meeting Apple’s stringent quality requirements.
