Apple could be potentially forced to drop a key supplier of iPhone OLED panels, following a preliminary ruling issued by the U.S. International Trade Commission (ITC) that found Chinese display maker BOE violated federal trade secret laws.
The ITC found that BOE and seven of its subsidiaries misappropriated Samsung Display’s trade secrets to manufacture panels, violating Section 337 of the Tariff Act. The commission has proposed banning BOE’s OLED imports and ordering existing U.S. inventories be removed from sale.
Apple could be looking at significant supply chain disruption if the ruling stands. BOE supplies around 20% of OLED displays for the iPhone 16 lineup and has built annual capacity for 100 million iPhone panels. The company has even established a dedicated facility in Sichuan province specifically for Apple orders after entering the iPhone display market with the iPhone 12.
The ITC will issue a final determination in November, followed by a 60-day presidential review. According to analysts, these sort of preliminary rulings are rarely overturned. Whichever way things go, existing Apple devices already imported to the U.S. wouldn’t be impacted by the ITC ruling, however Business Korea notes that the legal risks could lead Apple to reconsider its dependence on BOE.
As for alternative suppliers, Samsung and LG Display would likely absorb BOE’s iPhone panel orders if the import ban takes effect.
The trade secret ruling comes amid escalating patent disputes between the two display giants. BOE and Samsung Display now have six active cases against each other, including five patent infringement suits and the trade secret case.
BOE recently filed its second patent lawsuit in two months, targeting Samsung’s Galaxy devices, including the Galaxy Z Fold5, Fold6, and the S25 Ultra. BOE has asked the court to ban the import, sale, and distribution of the products in the U.S., as well as full legal cost compensation.
(Via DigiTimes.)
