BOE reportedly struggling with OLED quality for 'iPhone 12' screens

Usually, it's only a percentage of a run that is bad, but it sounds as if the entire production batch was bad.  How is that even possible?  I wouldn't think a company would take orders if production was going to be that bad.  It seems rather scary but maybe first production batches are always a problem.  I hope that's just the case.  Why is Samsung going with an outside vendor when they can produce their own in-house displays?

Don't we hear something like this every product cycle?

gmgravytrain said:

Usually, it's only a percentage of a run that is bad, but it sounds as if the entire production batch was bad.  How is that even possible?  I wouldn't think a company would take orders if production was going to be that bad.  It seems rather scary but maybe first production batches are always a problem.  I hope that's just the case.  Why is Samsung going with an outside vendor when they can produce their own in-house displays?

mike1 said:

Don't we hear something like this every product cycle?

Yes, mike1, we do hear something like this every year. Gmgravytrain, this is an unconfirmed report from a source with little track record on reliability, so I would not put too much stock in it.

While I'm not an expert on manufacturing, and while this is certainly something that could happen in the run-up to production, I feel pretty confident that the parts the next iPhone will need -- including screens -- are already stockpiled in large quantities. If reports that assembly of the iPhone 12 will begin next month are correct, that would suggest that components needed for said assembly are already available and that any problems on that end would have been sorted out weeks if not months ago.

It would be folly of the highest order to hire thousands of new Foxconn workers to put something together that could be halted by any minor production problem so close to the start date for final assembly and shipping . Such a practice would leave zero margin for error and cause workforces to be idle and delays if any problem, no matter how minor or significant, come up. Foxconn will need every day they have between July and the end of September to assemble and quality-check the dozens of millions of iPhones they will need for the initial rush, and maybe then some.

Even if the report is completely accurate, it reflects how important it is for Apple to have multiple sources for parts. Particularly given the delays that have already been introduced (and seemingly dealt with) to the normal cycle due to the COVID-19 outbreak and resulting economic issues, Apple's skill at manufacturing at the scale they do is being put to an incredible test. Thus far, it appears we're very likely to see the iPhone 12 launch more or less on time (though I expect supply will be as usual quite constrained for a short time).

With over a decade of various quality and supply issues, when will Apple build its own US based display fab? It’s not as if their huge need for displays will go away anytime soon. They can define and control the process more closely, automate to negate labor savings and further integrate vertically. I realize it’s a huge and complex endeavor but obviously a source of risk. They’ve only invested in firms thus far - and those investments did not seem to go well. Instead of spending billions on TV shows - invest in bringing back tech manufacturing to the US.