Trouble for BOE? Trade ruling could shake up Apple's display supply

Recently, it was reported that BOE was working hard to win Apple's favor for OLED iPhone production back, but now it seems things may not turn out in BOE's favor. Not because of Apple, but because of an alleged violation of federal trade secret laws. 

Is BOE in trouble?

Apparently, the ITC found that BOE and seven of its subsidiaries misappropriated Samsung Display's trade secrets in order to manufacture panels. This could be a violation of Section 337 of the Tariff Act. 

The commission proposed that BOE be banned from OLED imports and also that all existing U.S. inventories be removed from sale. If this ruling stands, Apple could be facing a significant supply chain disruption. 

BOE supplies around 20% of OLED displays for the iPhone 16 lineup. It has also built an annual capacity for 100 million iPhones. Now, the company has even made a dedicated facility in the province of Sichuan specifically for Apple...

BOE entered the iPhone display market with the iPhone 12. It didn't exactly have a smooth ride so far, and the quality of its components has been previously criticized by Apple. But it did have a portion of display orders alongside LG and Samsung Display. 

The ITC is expected to issue a final ruling in November. Then, there will be a 60-day presidential review. But it's not looking very positive for BOE, though. Analysts claim that these sorts of preliminary rulings are rarely overturned. Nevertheless, we'll know eventually. 

Meanwhile, existing Apple devices that have already been imported to the U.S. are not going to be impacted by the ITC ruling, even if it doesn't rule in favor of BOE. However, these legal risks could make Apple reconsider how much it depends on BOE. 


This is not the only instance of Samsung and BOE arguing legally. The two companies now have six active cases against each other, actually: five patent infringement suits and the trade secret case. 

What this could mean for iPhone buyers

For everyday iPhone users, this situation could have some impact, but it might not be immediate. If Apple has to stop using BOE's displays, it will likely turn to other suppliers like Samsung and LG. This switch could lead to higher production costs, which might make future iPhones more expensive (potentially). 

There's also a chance that supply could be tighter for a while, causing delays or limited availability of certain models. However, Apple is experienced at managing its supply chain, so most users probably won't see major changes right away. Still, it's something to keep an eye on, especially if you’re planning to buy a new iPhone soon.

I personally think that situations like this highlight just how complicated the global tech supply chain really is. On one hand, one has to protect intellectual property. On the other hand, if the ruling goes through, it could create an effect not just for BOE, but for Apple and buyers as well – it could lead to shipment delays, for one.
 
It's going to be interesting to see how Apple responds, and whether Samsung and LG can smoothly pick up the slack if BOE gets sidelined. 

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