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U.S. says BOE stole Samsung's trade secrets, putting Apple ties in jeopardy

Published: 15 Jul. 2025, 19:20 Updated: 15 Jul. 2025, 19:22

Apple's iPhones are displayed at an Apple Store at Grand Central Terminal in New York City on Oct. 16, 2024 [REUTERS/YONHAP]

A recent ruling by the U.S. International Trade Commission (ITC) that found Chinese display maker BOE guilty of misappropriating Samsung Display’s trade secrets is sending ripples through global tech markets — with Apple at the center of the fallout.

On Friday, the ITC issued a preliminary determination that BOE and seven affiliates had infringed on Samsung’s organic light-emitting diode (OLED) patents. If finalized in November, the ruling would restrict U.S. imports of BOE’s OLED panels and modules made with Samsung’s proprietary tech.

Industry observers say such preliminary findings rarely get overturned. But the real wild card, analysts note, is Apple.

BOE’s OLED panels aren’t typically shipped to the United States as loose components. Instead, they arrive embedded in finished products — most notably, iPhones assembled in China. That nuance means the ITC ruling wouldn’t automatically halt iPhone imports.

Still, legal risks loom.

Customers visit an Apple store promoting the iPhone 16 at an outdoor shopping mall in Beijing on May 11. [AP/YONHAP]

“Samsung Display could use the ITC decision to demand damages from companies that continue sourcing BOE panels,” an industry insider said. “Given the risk of using components tied to trade secret violations, Apple might decide to cut BOE out of its supply chain altogether.”

If Apple moves to drop BOE, Korea’s display makers could stand to benefit. BOE currently supplies a portion of the OLED panels for standard iPhone models such as the iPhone 16, 16 Plus, and the entry-level iPhone 16e.

Industry estimates suggest BOE accounts for roughly 20 percent of Apple’s overall iPhone panel orders. With Apple using BOE to bolster its bargaining power on display prices, any narrowing of its options could strengthen the hand of Korean suppliers.

Visitors examine a prototype of Samsung Display’s Flex G at the company’s booth during MWC 2025 at the Fira de Barcelona Gran Via convention center in Barcelona, Spain, on March 5. [NEWS1]

On the flip side, some market watchers warn that BOE could double down on the Chinese market. Shut out of the United States, BOE might leverage aggressive pricing to secure a dominant position in OLED panels for iPhones sold in China.

Outlets including PhoneArena have reported that Apple could adopt BOE’s OLED panels in its upcoming flagship iPhone 17.

So far, Apple's iPhone Pro and Pro Max models have relied on low-temperature polycrystalline oxide (LTPO) OLED displays — a technology demanding advanced manufacturing capabilities — supplied exclusively by Samsung Display and LG Display. BOE has repeatedly tried to break into this LTPO supply chain but has yet to clear Apple’s quality tests.

If BOE’s panels do make it into the iPhone 17 flagships later this year, it could deal a blow to Korea’s display industry by opening up the lucrative LTPO OLED segment to Chinese competition in Apple’s largest market.

“For Apple, leaning into a local supplier could tap into patriotic consumer sentiment in China and reduce costs. It might see little downside,” an industry insider said.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY LEE GA-RAM [[email protected]]