Apple monitoring South Korean suppliers over Japanese trade war

Posted:
in iPhone
Trade wars are continuing to prompt Apple to rethink some of its manufacturing and supply chain options, with the iPhone maker said to be examining the situation of an ongoing tiff between South Korea and Japan, one which could lead to Apple using China's BOE for future iPhone display panels.




Japan and South Korean companies are being affected by restrictions from Japan on South Korean firms, retaliating against a Korean court ruling that Nippon Steel has to pay for using forced Korean labor during the Second World War. The restrictions, which kicked in on July 4, affects the export of chemicals used in display production from Japan to South Korea, affecting suppliers that provide components to Apple, among other firms.

In the wake of the supply disruption, Apple and other tech companies are reported by The Investor to be looking into how the restrictions are affecting their suppliers, at the same time as renewing contacts with Samsung. "They discussed the current situation with Samsung officials," industry sources told the report.

The restrictions are thought to create issue with the production of displays as well as DRAM and NAND flash memory chips, with all three core elements of practically all computing devices produced today. If the restrictions happen over a long period, supplies of the components from Samsung and others could be affected, impacting the overall production of other hardware.

As a mitigation, Apple is now considering the possibility of introducing another OLED display supplier to the roster for its iPhones. Industry sources of DigiTimes believe the Chinese display panel producer BOE Technology is a "strong contender" for OLED orders from Apple, with the ongoing trade war making the Chinese firm a far more attractive opportunity as the situation escalates.

Apple uses a number of suppliers for its displays, with the bulk of OLED stemming from Samsung with LG Display also providing some panels, while the troubled Japan Display largely handles LCD production.

BOE has invested heavily in OLED production, and has previously attempted to garner orders from Apple for the iPhone X's OLED panel. Given the situation, and the benefits of having a diverse list of component suppliers, a BOE-produced display panel in a future iPhone has the potential of happening, depending on how the Japan-Korea situation plays out.

Comments

  • Reply 1 of 14
    SpamSandwichSpamSandwich Posts: 31,334member
    Saw DigiTimes quoted, gave up and went straight to the comments.
    AppleExposed
  • Reply 2 of 14
    GeorgeBMacGeorgeBMac Posts: 4,961member
    Has anybody ever won a trade war?
    lmac
  • Reply 3 of 14
    SoliSoli Posts: 9,208member
    "You fell victim to one of the classic blunders. The most famous of which is: never get involved in a [trade war with] Asia."
  • Reply 4 of 14
    lmaclmac Posts: 195member
    Rather than getting more in bed with China, Apple should help Japan and S. Korea sort this out, and keep diversifying the supply chain.
    AppleExposed
  • Reply 5 of 14
    gatorguygatorguy Posts: 20,930member
    Saw DigiTimes quoted, gave up and went straight to the comments.
    Ummm... The Investor was the source wasn't it? 

    EDIT: Well yes it was. Where did you see Digitimes?
    "In the wake of the supply disruption, Apple and other tech companies are reported by The Investor to be looking into how the restrictions are affecting their suppliers, at the same time as renewing contacts with Samsung..."
    edited July 18
  • Reply 6 of 14
    lmac said:
    Rather than getting more in bed with China, Apple should help Japan and S. Korea sort this out, and keep diversifying the supply chain.
    Very biased opinion!!!You are brainwashed by CNN, China is not as bad as it is imagined.
  • Reply 7 of 14
    maestro64maestro64 Posts: 4,643member
    lmac said:
    Rather than getting more in bed with China, Apple should help Japan and S. Korea sort this out, and keep diversifying the supply chain.
    Very biased opinion!!!You are brainwashed by CNN, China is not as bad as it is imagined.
    I do not listen to CNN and my views are based on 20yrs of working with China and Chinese company first hand and prior to that I work with Japan and Japanese company. As difficult as it is dealing with Japanese companies it far better than what you have to deal with in China.  

    From inside China they see nothing wrong with what they do. Using (stealing) other people's idea and solution is not seen the same way as the rest of the modern world see it. China see things as it is all for the common good no one gets to own anything and everyone is allow to benefit for what anyone is doing. Most Chinese do not really understand the concept of Copywrites, or Intellectual Property since these ideas do not really exist in a communist world.
    AppleExposedyuniverseracerhomie3viclauyycradarthekat
  • Reply 8 of 14
    gatorguygatorguy Posts: 20,930member
    maestro64 said:
    lmac said:
    Rather than getting more in bed with China, Apple should help Japan and S. Korea sort this out, and keep diversifying the supply chain.
    Very biased opinion!!!You are brainwashed by CNN, China is not as bad as it is imagined.
    China see things as it is all for the common good no one gets to own anything and everyone is allow to benefit for what anyone is doing. Most Chinese do not really understand the concept of Copywrites, or Intellectual Property since these ideas do not really exist in a communist world.
    Attitudes towards intellectual property in China today have vastly improved and more in agreement with Western ideas than they were 10 years ago. That means better, still not perfect. 

    https://www.ipwatchdog.com/2018/11/21/chinas-actions-copyrights-support-ip-rights/id=103269/
    https://www.china-briefing.com/news/intellectual-property-protection-china-laws-registration-procedures/
    edited July 18
  • Reply 9 of 14
    maestro64 said:
    lmac said:
    Rather than getting more in bed with China, Apple should help Japan and S. Korea sort this out, and keep diversifying the supply chain.
    Very biased opinion!!!You are brainwashed by CNN, China is not as bad as it is imagined.
    I do not listen to CNN and my views are based on 20yrs of working with China and Chinese company first hand and prior to that I work with Japan and Japanese company. As difficult as it is dealing with Japanese companies it far better than what you have to deal with in China.  

    From inside China they see nothing wrong with what they do. Using (stealing) other people's idea and solution is not seen the same way as the rest of the modern world see it. China see things as it is all for the common good no one gets to own anything and everyone is allow to benefit for what anyone is doing. Most Chinese do not really understand the concept of Copywrites, or Intellectual Property since these ideas do not really exist in a communist world.
    China in not traditional communist. We can say it is communism with capitalism character or capitalism with communism character or State capitalism. By the way, why do you always attribute the bad thing of China to its communism? Now I am sure you are not brainwashed by CNN, you are definitely brainwashed by TRUMP
  • Reply 10 of 14
    yuniverseyuniverse Posts: 106member
    brainwashed by CNN and Trump? Now there's an oxymoron.
    viclauyyc
  • Reply 11 of 14
    racerhomie3racerhomie3 Posts: 1,152member
    Hey guys. Please stop spreading political manifestoes over here.
    Soli
  • Reply 12 of 14
    gatorguy said:
    Saw DigiTimes quoted, gave up and went straight to the comments.
    Ummm... The Investor was the source wasn't it? 

    EDIT: Well yes it was. Where did you see Digitimes?
    "In the wake of the supply disruption, Apple and other tech companies are reported by The Investor to be looking into how the restrictions are affecting their suppliers, at the same time as renewing contacts with Samsung..."
    Just a guess but you and @SpamSandwich are addressing separate parts of the story.  Your quote from the Investor deals with the Japan/South Korea disagreement.  His quote about Digitimes is about the rumor of Apple sourcing OLED from BOE.  From the article, two paragraphs below the one you quoted:
    "
    As a mitigation, Apple is now considering the possibility of introducing another OLED display supplier to the roster for its iPhones. Industry sources of DigiTimes believe the Chinese display panel producer BOE Technology is a "strong contender" for OLED orders from Apple, with the ongoing trade war making the Chinese firm a far more attractive opportunity as the situation escalates. "
  • Reply 13 of 14
    gatorguygatorguy Posts: 20,930member
    gatorguy said:
    Saw DigiTimes quoted, gave up and went straight to the comments.
    Ummm... The Investor was the source wasn't it? 

    EDIT: Well yes it was. Where did you see Digitimes?
    "In the wake of the supply disruption, Apple and other tech companies are reported by The Investor to be looking into how the restrictions are affecting their suppliers, at the same time as renewing contacts with Samsung..."
    Just a guess but you and @SpamSandwich are addressing separate parts of the story.  Your quote from the Investor deals with the Japan/South Korea disagreement.  His quote about Digitimes is about the rumor of Apple sourcing OLED from BOE.  From the article, two paragraphs below the one you quoted:
    "As a mitigation, Apple is now considering the possibility of introducing another OLED display supplier to the roster for its iPhones. Industry sources of DigiTimes believe the Chinese display panel producer BOE Technology is a "strong contender" for OLED orders from Apple, with the ongoing trade war making the Chinese firm a far more attractive opportunity as the situation escalates. "
    Ah, thank you sir. All good. 
    SpamSandwich
  • Reply 14 of 14
    maestro64maestro64 Posts: 4,643member
    gatorguy said:
    maestro64 said:
    lmac said:
    Rather than getting more in bed with China, Apple should help Japan and S. Korea sort this out, and keep diversifying the supply chain.
    Very biased opinion!!!You are brainwashed by CNN, China is not as bad as it is imagined.
    China see things as it is all for the common good no one gets to own anything and everyone is allow to benefit for what anyone is doing. Most Chinese do not really understand the concept of Copywrites, or Intellectual Property since these ideas do not really exist in a communist world.
    Attitudes towards intellectual property in China today have vastly improved and more in agreement with Western ideas than they were 10 years ago. That means better, still not perfect. 

    https://www.ipwatchdog.com/2018/11/21/chinas-actions-copyrights-support-ip-rights/id=103269/
    https://www.china-briefing.com/news/intellectual-property-protection-china-laws-registration-procedures/
    You do know that China is Communist county and controls all information flow and they present to the world what they want the world to see. The reason the trade deal is falling apart with China is because they are refusing to put any teeth into their so called IP and copyright enforcement. As an example, since US company are required to do a JV to do business in China, any information transferred to the JV is not subject to an IP claim since it now owned by a Chinese entity or the JV has to make the claim.
    jony0
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