Business
Samsung reportedly declined Apple to produce iPhone SE 4 displays
A recent supply-chain report has revealed that Samsung has opted out of manufacturing displays for the highly anticipated iPhone SE 4, slated for release in 2025. The decision reportedly stems from a disagreement between Samsung and Apple regarding the pricing of the displays, leading Apple to shift production to China’s BOE.
The report indicates that negotiations between Samsung and Apple failed to reach an agreement on the price of the displays, prompting Samsung to withdraw from the discussions. Allegedly, Apple’s offered price was $25, while Samsung’s previous offer stood at $30. Consequently, BOE emerged as the sole supplier for the displays of the iPhone SE 4.
Initially, plans for the iPhone SE 4 hinted at a significant upgrade, including the removal of the Home button to align with the all-screen design prevalent in modern smartphones. It was speculated that the display from the iPhone 13, similar to that of the iPhone 14, would be utilized in the new model, marking a departure from the conventional approach of using newer technology in flagship devices.
While the switch to BOE introduces some level of risk, particularly concerning production challenges and yield rates, Samsung’s decision underscores the importance of pricing and commercial viability. Despite Samsung’s previous experience in manufacturing displays for iPhone models, including the iPhone 13 and 14, the company appears to have prioritized maintaining profitability over supplying displays for the iPhone SE 4 at potentially razor-thin margins.
Apple’s preference for multiple suppliers to mitigate risks and maximize negotiating power aligns with its decision to transition display manufacturing to BOE. Although Samsung’s withdrawal may raise concerns about potential disruptions in production, Apple is likely content with the outcome given the inability to secure agreeable terms with Samsung.
The involvement of BOE, a prominent display manufacturer based in China, indicates Apple’s continued efforts to diversify its supply chain and reduce dependency on individual suppliers. However, in this case, and if the reports are true, the move could have been forced. Still, we know that Apple has given display contracts to BOE for its flagship models in the past so it does have confidence in the company albeit less than Samsung for sure.
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