Chinese display manufacturer BOE is scaling up its OLED production to reclaim a stronger position in Apple’s iPhone supply chain. The company has set up 26 Apple-dedicated OLED module lines at its B11 plant in Chengdu, Sichuan. Eleven of these lines are already in mass production, with three used for development. At full pace, BOE can produce about 8 million OLED panels per month, translating to an annual output of 100 million units at 90% utilization and 85% yield.
BOE’s efforts are part of a long-term strategy to reestablish trust with Apple. In 2022, Apple removed BOE from the iPhone 13 supply chain after the supplier altered transistor circuit designs without approval. Apple halted production immediately. After addressing the issue, BOE resumed partial shipments for the iPhone 14 and has since continued to grow its role, albeit cautiously.
Still Trailing Samsung and LG in Volume and Tech
Despite its production capability, BOE’s actual shipments remain far below capacity. According to UBI Research’s latest China Display Trend Report, BOE shipped around 21 million OLED panels for iPhones in the first half of this year, up 13% from the same period last year. Analysts expect total shipments to reach 45 million units by the end of 2025. Even with this growth, the figure is less than half of the company’s total annual capacity.
UBI Research also confirmed BOE’s progress in narrowing the performance gap with Samsung Display and LG Display, especially in panel brightness, power efficiency, and durability. However, BOE is still excluded from early shipments of flagship models. The iPhone 16 launch saw limited BOE involvement, and a similar scenario is expected for the iPhone 17. Significant participation is more likely with the iPhone 18.
UBI analyst Kim Junho said BOE’s rising market share is shifting the dynamic in Apple’s supply chain. “BOE’s expansion could give Apple greater leverage when negotiating display prices with Samsung and LG,” he said. “Korean firms will need to stay aggressive on technology and quality to keep their edge.”