Apple to Stop Buying Displays from Chinese BOE: Here's Why

Apple may soon break off relations with BOE, the Chinese display manufacturer. Very recently, a U.S. committee objected that display manufacturing companies in China are a threat to national security. It recommended measures that, ideally, must be taken by the U.S. Department of Defense. This could be a warning for Apple to stop the collaboration with BOE.

BOE Currently Selling OLED Panels to Apple

BOE currently sells OLED panels to Apple. It sells at a cheaper price compared to its competitors such as LG and Samsung. It has been a good partner for Apple because, with its affordable pricing, it has given Apple better bargaining power. Moreover, it is also going to produce panels for the budget-friendly version of Apple's iPhone SE 4, which it is going to release next year.

Security Concerns Voiced by U.S. Lawmakers

Recently, the problem received the spotlight by the Select Committee on the CCP in the U.S. House of Representatives. In a letter to Defense Secretary Lloyd Austin, the committee's chairman John Moolenar remarked. First reported by AppleInsider, the letter was referring to BOE and Tianma, another firm from China, as possible threats to the national security of the U.S. It is believed that if China subsidizes them, then it could affect being a risky partner with American firms.

Future Relationships

Apple may revisit the partnership with BOE since there is growing concern over national security. Doubtless, the pricing offered by BOE provides an advantage, but the pressure being applied by U.S. lawmakers may be pushing Apple to explore other options. The development may have quite an impact on both companies soon.