Apple likes to have a diversified supply chain as sourcing components from multiple vendors puts it in a better negotiating position. Suppliers must meet very high standards to win Apple’s business.
MicroLEDs are brighter, more efficient, and more durable than OLEDs. Apple has been working on MicroLED screens for a decade and wanted to equip 2017’s iPhone X with a MicroLED screen but that didn’t pan out because of high manufacturing costs and potential for defects.
Some of Apple’s future products, such as the foldable iPad and mixed-reality headset, will likely only use components from LG, BOE, and Sony, cutting Samsung out of the equation.
Apple is used to dictating terms to suppliers but the dynamics are different with Samsung. The South Korean giant is ahead of other display manufacturers and isn’t as eager to please Apple as other suppliers.
The report says Apple often has to settle for things other manufacturers wouldn’t be able to get away with, such as secrecy, quality issues, defects, and not providing visibility into the manufacturing process.
