In a recent development, supply-chain reports indicate that Samsung has declined to manufacture displays for the upcoming iPhone SE 4, expected to debut in 2025 with a major upgrade. The Korean tech giant and Apple were unable to reach an agreement on price, leading Apple to turn to China's BOE for manufacturing the displays.

Rumors about a significant upgrade to Apple's entry-level phone, ditching the Home button and adopting the all-screen design, have been circulating since November of last year. This information was further supported by another report suggesting that Apple would reuse the display from the iPhone 13, which is similar to the one used in the iPhone 14. This recycling of technology is a cost-effective way for Apple, as it saves on research and development expenditure.

Initially, Samsung, BOE, and Tianma were in competition to secure the contract for display manufacturing. However, according to a Korean report cited by IT Home, all the displays for the iPhone SE 4 will now be produced by BOE, as Samsung withdrew from negotiations due to price issues. Samsung's price offer was $30, while Apple's desired price was only $25.

The report also reveals that Tianma failed to meet Apple's quality standards for the display, leading to BOE winning the sole contract for production. The shift to BOE introduces some level of risk, as Samsung has already overcome production challenges and achieved high yields with the displays for the iPhone 13 and 14. BOE, although capable of learning from Samsung's experience, could encounter some obstacles during mass production.

Apple generally prefers having multiple suppliers to mitigate risks and maximize negotiation power. However, since the iPhone SE 4 is not a flagship product and Samsung did not agree on the desired price, it is likely that Apple will be content with the outcome. Similarly, Samsung has made a business decision to focus on manufacturing displays for flagship iPhones, rather than accepting razor-thin margins for an older product.

While Samsung's departure from the deal poses some risks, Apple's collaboration with BOE presents an opportunity for the Chinese display manufacturer to gain valuable experience. As the launch of the iPhone SE 4 approaches, technology enthusiasts will be keen to see how BOE fulfills the role of display supplier for Apple.

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