Analyst firm UBI claims that BOE could eat up LG Market’s market share because it wants to increase production of OLED panels for the iPhone in 2023. The Chinese screen manufacturer reportedly does this by turning three of its factories into plants for the production of OLED panels for Apple.
So far, BOE has been producing older screens for the iPhone 12 and iPhone 13 in facilities in China, accounting for 10 percent of all iPhone screens produced in 2021.
It is estimated that by Q422, BOE will be able to produce 144,000 substrates each month, compared to 96,000 currently. This will surpass Samsung Display’s production capacity of 140,000 substrates per month and establish the supplier as a serious competitor. By Q422, BOE’s production capacity is expected to exceed the LG Display, making it Apple’s primary supplier for iPhone screens sometime around 2023.
The threat to LG Display is inevitable because Apple is its only customer for Gen 6 OLED panels, while Samsung Display and BOE are more competitive and have other customers to return to. Furthermore, the expansion of BOE could pose problems for LG as it closed its smartphone division and stopped producing LCD panels for the iPhone earlier this year.
For years, Samsung has been Apple’s main supplier for iPhone screens and BOE is trying to squeeze itself into that equation. Since the end of 2019, reports suggest that the latter has made some progress. It then became Samsung’s rival, with its current production capacity. If UBI Research’s analysis is correct, BOE could surpass Samsung Display in the next few years.
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