Apple’s iPhone display supply chain hit by ITC patent judgement
The world’s most popular smartphone
Apple’s iPhone display supply may have taken a knock as one of its iPhone display suppliers is accused of patent abuse.
The US International Trade Commission (ITC) found China’s BOE to have abused several of Samsung Display OLED patents – if this decision is finalized in December it could restrict imports of BOE panels made using Samsung’s tech.
What they want
The ITC decision recommends:
- A Limited Exclusion Order pending review.
- That BOE stop abusing these patents
- That the BOE companies accused of the abuse post some form of bond pending review.
What that means
This is a problem for BOE, but perhaps a greater challenge for Apple, which uses BOE displays in iPhones made in China. It is important to note that BOE provides only around 20% of iPhone panels with others made elsewhere. To avoid any potential damages against it, Apple may choose to dump BOE entirely or could try to cultivate support in China by moving to exclusively use BOE displays in iPhone sold in China, a Korean newspaper speculates. Doing so might reduce iPhone manufacturing costs in China, while also appealing to consumer sentiment there.
Apple had been expected to turn to BOE for displays in iPhone 17 devices. While the ITC ruling doesn’t prevent this in the short-term, Apple may choose to source more displays elsewhere as the upcoming iPhone range matures.
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