Apple’s next affordable iPhone could see disruption in its supply chain when it comes to one of its most critical components: the display.
According to a new report from Korea, Samsung has withdrawn from negotiations to supply OLED displays for the upcoming iPhone SE 4 after Apple rejected its pricing terms. Citing an industry source, ZDNet Korea claims that Samsung Display has withdrawn its offer to manufacture screens for the upcoming iPhone SE model after Apple refused to honor its price of $30 per panel.
Apparently, Apple wants to pay only around $25 per unit for the 6.1-inch OLED displays that are rumored to be coming to the discounted iPhone lineup. Indeed, as a reminder, we now know that the next iPhone SE 4 should benefit from a screen with a notch, like previous generation iPhones.
Also read – iPhone SE 4: new design, recent components, Apple’s affordable iPhone will move upmarket
Samsung and Apple have not reached an agreement on the screen of the iPhone SE 4
This pricing impasse has apparently paved the way for Chinese display makers, such as BOE, to become the main supplier of displays for the iPhone SE 4, replacing Samsung. The report states that Apple is actively trying to reduce its dependence on Samsung for screens.
However, opting for BOE as a sole supplier carries some risk for Apple. The other remaining candidate, Tianma, has reportedly yet to prove it can meet Apple’s strict quality standards for these panels, which would be based on iPhone 13 and 14 screen specifications.
If BOE becomes the sole supplier of displays, it will have to develop the manufacturing processes for these iPhone displays from scratch, without being able to rely on the expertise of a more established manufacturer like Samsung. This could open the door to quality control issues or supply shortages if BOE encounters difficulty ramping up production.
We should learn more quickly anyway, since this iPhone SE 4 is expected to launch in 2025 and constitute a relatively affordable entry point into the iPhone ecosystem. It now remains to be seen at what price this new device will be sold.