On July 6, a number of supply chain sources pointed out that BOE’s OLED panel has passed the quality certification of iPhone 14 series mobile phones and will supply panels for it. On July 7, another BOE insider told the media that the relevant situation was true, but the shipment volume was not clear.

In response to media inquiries, BOE said that it was inconvenient to disclose the relevant information because the company and important customers had signed confidentiality agreements.

To our surprise, only in May this year, there were rumors that BOE was kicked out of Apple’s supply chain. At the time of mass production of iPhone 14 series mobile phones, BOE fought a “turnaround”, making the previous rumors self defeating.

The confusion between BOE and apple

In May, South Korean media took the lead in publishing reports that BOE increased the width of TFT circuit due to lack of IC display driver, so it adjusted the design of OLED screen, which was perceived by apple and stopped BOE’s supply of iPhone 13 screen.

With the release of this news, other people who claimed to know the inside story said that BOE would not only lose the original iPhone 13 screen order due to the modification of screen parameters, but also suffer heavy losses in the supply of iPhone 14. The original plan to have 30million iPhone 14 screens adopted by BOE would be canceled, so BOE would be basically out.

To sum up, BOE was basically kicked out of Apple’s supply chain because of some product parameter modifications. For this news, BOE responded at that time that it would not comment on it according to market rumors. BOE adheres to the principle of “customer first, quality first” and works closely with users at home and abroad. The company’s annual development goals in OLED remain unchanged, and related businesses are also developing steadily.

At the same time, BOE also said that at present, the company’s annual goals in the OLED field have not changed, and the development of related businesses has been promoted in an orderly manner.

Later, industry insiders said that there may be a “misunderstanding” between BOE and apple, but being kicked out of Apple’s supply chain is a transitional speculation, and BOE is still a stable supplier of Apple’s iPhone and other device screens.

BOE becomes the third largest screen supplier of iPhone 14

At present, BOE insiders and many supply chain people have proved that BOE will supply AMOLED screens for iPhone 14.

After checking the relevant sources, it can be concluded that this news was first reported by foreign media citing the information of supply chain people. Among these breaking news, BOE is believed to ship about 5million OLED panels for Apple iPhone 14 later this month, basically 6.1-inch screens, that is, for iPhone 14 and iPhone 14 pro.

Subsequently, this news was demonstrated by the domestic media, and the source was an insider of BOE. They told the media that the company’s AMOLED screen has indeed obtained the certification of iPhone 14, but the specific shipment volume and mass production time are still uncertain.

Although at present, BOE is basically determined to supply screens for iPhone 14, there are large differences in the shipments learned by domestic and foreign media. The initial order of iPhone 14 was about 90million, while foreign media reported that BOE received 5million supply orders, including 60million for Samsung and 25million for LG. If this figure accounts for the proportion, the order share of BOE is much smaller than that of Samsung and LG, which is only about 5.6%.

However, the data obtained by the domestic media is that 15% of the iPhone 14 screens will be supplied by BOE. If calculated with 90million iPhones, BOE’s initial order will reach 13.5 million.

However, the consensus of Chinese and foreign media is that BOE will play the role of the third largest supplier in the supply of iPhone 14 screens.

Fruit chain is a “double-edged sword”

However, when there was a rumor of “discord” between BOE and apple, some analysts had already expressed the view that entering Apple’s supply chain is a “double-edged sword” for domestic enterprises, which is suitable as a springboard rather than the ultimate goal of enterprises.

In fact, this is not difficult to understand. Oufeiguang is a clear example. In 2016, through the acquisition of Guangzhou delta imaging company, which is mainly engaged in micro camera modules and optical lenses, ofI light officially entered the apple supply chain to supply lens modules for iPhone. According to the financial report data, from 2018 to 2020, through Apple’s business, the revenue and net profit of oufeiguang soared.

However, the financial report of oufeiguang in 2020 also proved the harm of relying heavily on apple. According to the company’s financial report in 2020, the net profit was negative 1.945 billion yuan, a year-on-year decrease of 481.39%. According to the financial report forecast of oufeiguang in 2021, the company is expected to have a net loss of 1.9 billion yuan -2.7 billion yuan in 2021, which means that the loss has further expanded. The change from profit to loss is only because Apple moved orfig out of the supply chain. Oufeiguang pointed out in the reasons for the loss that the company’s product shipments related to specific customers fell significantly year-on-year; The company bears the operating costs incurred by subsidiaries related to specific customer business after the termination of the procurement relationship.

In BOE, we can also see the huge impact of Apple’s supply chain on an enterprise. According to the company’s financial report, BOE achieved a revenue of 219.310 billion yuan in 2021, an increase of 61.79% year-on-year; The net profit attributable to shareholders of listed companies was 25.831 billion yuan, an increase of 412.96% year-on-year. Both revenue and profit hit record highs. One important reason is that BOE has entered the apple supply chain since 2021.

The example of oufeiguang proves that general enterprises need to pay great efforts and costs to serve apple, which brings uncertainty to enterprise operations, because once Apple abandons the enterprise, many enterprises may spend years to absorb these costs.

In other words, in order to better serve apple, many enterprises need to invest a large proportion of resources, which may drag down enterprise research and development, and it will take several years to help themselves when they are kicked out of Apple’s supply chain in the future.

Previously, CCTV also called on domestic enterprises to get rid of their dependence on apple.

Postscript


The author believes that the role of Apple’s supply chain should be viewed dialectically. For many companies, this is an almost perfect springboard. Catching this bus means that enterprises take off. At present, apart from apple, few other enterprises can have such influence in the consumer electronics industry. While enjoying dividends, domestic enterprises in the fruit chain should not focus on apple, but should further improve product competitiveness, expand business scope, and prevent them from becoming the next “oufeiguang”.

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