A ruling by the International Trade Commission (ITC) could prevent some iPhone units built in China from getting shipped into the U.S. The ITC is a U.S. Federal agency that rules on unfair trade practices. One of its powers is the ability to issue exclusion orders that ban products found to infringe on intellectual property rights. In 2023, two companies that you’re probably familiar with, Samsung Display and Chinese display manufacturer BOE, were having a serious disagreement over alleged technology theft.
Both companies sued each other, and Samsung Display also filed a complaint with the ITC, which just announced a preliminary ruling. The ITC ruled in Samsung Display’s favor, stating that the Samsung Electronics subsidiary “has proven by a preponderance of evidence” that BOE engaged in “misappropriation of trade secrets” to make its OLED panels. Yes, this is a preliminary ruling, and the final judgment will probably not be made until November. At that point, it will be up to U.S. President Donald Trump to decide whether the BOE products found to be infringing on Samsung Display’s patents should be banned from the U.S.
BOE is estimated to account for 20% of overall orders Apple has placed for iPhone displays. Apple could end up using BOE’s OLED panels earmarked for the iPhone on units sold in China. If it is banned from the U.S. market, BOE could focus on the Chinese market and reduce its prices to take business away from Apple’s Korean based display suppliers such as Samsung Display and LG Display.
