Apple’s Supplier Strategy and Samsung
Apple is well-known for its supplier strategy, and it likes to have a diversified supply chain that spans across multiple vendors. This approach not only helps the company get better negotiating power but also helps to minimize risks in case a particular supplier fails to meet Apple’s requirements. However, there is one company that remains beyond Apple’s control – Samsung.
The Importance of Meeting Apple’s High Standards
Suppliers who want to do business with Apple must meet very high standards set by the company. Display maker BOE, for instance, took many tries before finally breaking into Apple’s supply chain. However, when it comes to high-end products like the iPhone 14 Pro and rumored OLED iPads, Samsung remains Apple’s go-to supplier.
Moving Towards MicroLED Technology
Apple is looking to move away from Samsung by developing MicroLED technology. MicroLEDs are brighter, more efficient, and more durable than OLEDs. However, the development of this technology has proven to be much more time-consuming than Apple originally anticipated. In fact, Apple has been working on MicroLED screens for a decade and was planning to equip the iPhone X with a MicroLED screen in 2017. However, high manufacturing costs and potential defects led to this plan being scrapped.
MicroLED Apple Watch Models Coming Soon
While it may be a while before we see iPhones and iPads with MicroLED screens, we can expect to see Apple Watch models with in-house MicroLED screens in either 2024 or 2025. Although the company was originally planning to release a smartwatch with a MicroLED screen this year, the technology is not yet ready. Apple could, however, release a MicroLED Apple Watch next year with panels from LG and Sharp.
Samsung’s Relationship with Apple
Apple is used to dictating terms to its suppliers, but the dynamics are different with Samsung. Samsung seems to be less willing to please Apple than other suppliers. This has resulted in Apple having to settle for some things that other manufacturers would not be able to get away with, such as secrecy, quality issues, defects, and not providing visibility into the manufacturing process. Furthermore, Samsung seems to have trust issues with Apple and does not let the company’s engineers and security officials into its facilities.
In one recent incident, Samsung refused to clean the iPhone 14 Pro’s screen which had traces of debris and residue, while in another incident, Apple engineers were not allowed inside the Samsung premises during a visit to South Korea in 2017 and had to stay in a hotel.
