In short: Apple is known for having relatively strict manufacturing guidelines for its products. Chinese display maker BOE is trying to scam a closer partnership with the Cupertino giant. In doing so, he could lose a lucrative contract to supply up to 30 million OLED panels for the iPhone 14.

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Samsung and LG have been Apple’s main suppliers of OLED screens for the iPhone for the past few years. However, the Cupertino giant also partnered with display maker Beijing Oriental Electronics (BOE), which was set to receive an order for about 30 million OLED panels for the iPhone 14. Previously, BOE only made display panels for refurbished iPhones.

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According to report from The Elec, the Chinese supplier could lose this lucrative contract for struggling to pass Apple’s stringent quality controls. In particular, BOE encountered many defects early in production, so it quietly redesigned the display to improve performance.

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Unfortunately for BOE, Apple engineers quickly noticed the discrepancy. The former company increased the circuit width of thin-film transistors on OLED panels, thereby lowering the specifications that Apple set for them. After the incident, BOE sent an executive, along with several engineers, to Apple headquarters to explain their actions.

Apple is expected to begin mass production of the upcoming iPhone as early as next month, so BOE’s decision to cheat in demonstrating its manufacturing capabilities could prompt Apple to place an order for 30 million iPhone 14 OLED panels with Samsung and LG instead. It also doesn’t help that BOE struggles to provide enough security. display drivers and power management chips for such a high order.

Meanwhile, Apple is reportedly exploring ways expand production outside of China to diversify production and create a more sustainable supply chain. The company is looking at alternative manufacturing centers in countries such as India and Vietnam, where suppliers such as Foxconn, Wistron and Pegatron are building new facilities.