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A recent legal development may lead to Apple being prohibited from selling iPhones equipped with displays manufactured by Chinese company BOE in the United States. Although this ruling is still not finalized, it is anticipated to take effect later this year.
The potential ban revolves around allegations that Apple utilized displays sourced from BOE, following accusations that BOE misappropriated manufacturing techniques from Samsung.
Apple’s display suppliers comprise three major firms: Samsung, LG, and BOE. Samsung has initiated a complaint with the U.S. International Trade Commission (ITC), claiming that BOE has infringed upon its trade secrets.
The ITC holds the authority to bar companies from both importing and selling products in the U.S. if they are found to violate patents or trade secrets.
Previously, the ITC imposed restrictions on Apple, preventing it from selling Apple Watches with a blood oxygen monitoring feature due to patent infringement involving Masimo, a health technology firm. Consequently, Apple had to disable this feature for watches sold in the U.S.
According to ET News, the ITC has backed Samsung’s allegations against BOE.
Samsung Display secured a significant victory in its lawsuit filed against BOE regarding organic light-emitting diode (OLED) trade secret infringement. The ITC recognized the infringement of BOE’s trade secrets in a preliminary ruling and imposed restrictions on imports.
While the ruling remains in its preliminary stage and will be finalized in November, such initial decisions are rarely overturned.
Although this preliminary ruling is not definitive, it carries substantial weight as the ITC investigates unfair trade practices. Overturns of preliminary judgments are extremely uncommon once the final ruling is issued.
Insights from 9to5Mac
BOE exclusively produces non-ProMotion displays, meaning the Pro models of iPhones would remain unaffected. However, the ban would impact other versions of the iPhone 16, as well as any model from the iPhone 17 lineup that may rely on BOE displays. Currently, it appears that the base iPhone 17 and the anticipated iPhone 17 Air could use non-ProMotion displays, compelling Apple to secure all orders from Samsung and LG.
This situation could prompt Apple to urgently reassess its display supply chain to eliminate BOE from the mix. In the worst-case scenario, it may disrupt the availability of both the base iPhone 17 and iPhone 17 Air in the U.S. market.
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