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The OLED panels for the new iPhone X come from Samsung, which was the only company able to meet Apple's high demands for quality and production level. Samsung is understandably happy about this deal, as it brings them huge profits. On the contrary, they are less enthusiastic at Apple. If we ignore the fact that Apple is "making money" from its biggest competitor, this situation is also not ideal from a strategic point of view. Apple usually tries to have at least two suppliers for components, either because of possible production outages or for better bargaining power. And it is precisely for the second supplier of OLED panels that a real fight has flared up in recent months, and now China is also entering the game.

During the year, it was rumored that the giant LG was preparing to produce OLED panels. News from the summer talked about the company preparing a new production line and investing huge funds. As it seems, this business is really tempting, because the Chinese have also applied for a word. China's BOE, China's largest display panel maker, has reportedly submitted a proposal to give Apple exclusive access to two factories where OLED panels are to be produced. Lines in these plants would process orders only for Apple, freeing Apple from its dependence on Samsung.

BOE representatives are said to have met with their counterparts from Apple this week. If the companies agreed, the BOE would have to invest more than seven billion dollars in the preparation of its plants. Due to the lucrativeness of this business, it can be expected that companies will still fight over it. Whether it's Samsung, LG, BOE or possibly someone else.

Source: 9to5mac

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