Samsung has reportedly pulled out from supplying displays for the upcoming iPhone SE 4, hence making room for BOE’s partnership deal with Apple. Even though Samsung Display initially proposed the lowest price for display panels, it struggled to meet Apple’s price terms, thus dissolving the partnership.
No Samsung Screens: Apple’s main supplier for iPhone SE 4 displays bows out
Earlier, three companies namely BOE, Samsung Display, and Tianma appeared in a bid to supply display panels for the iPhone SE 4. At $30 per unit, Samsung Display had the lowest price proposal with BOE at $35 followed by Tianma at $40. However, Apple had a budget of $20 per unit for the display panels which was much lower than all the proposed prices.
Apple’s budgetary constraints proved insurmountable for Samsung Display leading to its exit from the negotiations as the company could not tolerate price adjustments. So Apple turned to BOE as an alternate supplier and the second largest among those bidding suppliers as far as iPhone SE 4 screen requirements are concerned. Reports indicate that BOE has agreed to provide each panel $25 thereby securing this deal with Apple.
BOE’s higher initial price compared to that of Samsung Display makes the shift in supplier dynamics intriguing. In other words, BOE demonstrated flexibility and adaptability by reducing its price below that of Samsung Display in line with Apple’s demands.
Samsung may have left the field for iPhone SE 4, but iPhone 16 series is still in the running for Samsung displays
Samsung Display may have decided to withdraw from negotiations, but their overall strategy change aims at focusing on more lucrative opportunities like supplying displays for the iPhone 16 series. By refocusing efforts on higher-margin ventures, Samsung Display aims to maximize profitability rather than pursuing deals with slim profit margins.
This time, Samsung Display’s absence from the iPhone SE 4 supply contract is a loss on its part, but it also indicates the competitive nature and strict specifications that Apple has. The departure of Samsung Display and subsequent replacement by BOE was intended to maintain the flow of supplies for Apple’s new iPhone SE 4 due to be released soon.
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