In a strategic move to diversify its display supply chain, Apple has selected Tianma Microelectronics to provide 7-inch LCD panels for its upcoming screen-equipped HomePod, scheduled for release in 2025. The Chinese manufacturer secured the contract with an aggressive pricing of US$10 per unit, which industry observers note is exceptionally competitive even among Chinese suppliers.
The agreement signals a significant shift in Apple's display sourcing strategy, potentially challenging the dominance of established suppliers LG Display, BOE, and Sharp. While LG Display currently holds the largest share of Apple's IT product LCD supply, BOE's influence has been growing steadily.
Concurrently, BOE is positioned to become the primary OLED panel supplier for Apple's forthcoming iPhone SE4, sharing the supply chain with Korean manufacturers LG Display and Samsung Display. The final allocation of orders will likely depend on the sales performance of Apple's flagship models in 2024.
However, geopolitical tensions cast uncertainty over these arrangements. US House Special Committee Chairman John Moolenaar has urged the Defense Department to add BOE and Tianma to its Chinese Military Companies List, highlighting the complex interplay between supply chain economics and national security concerns.
The new HomePod model is expected to feature an A18 processor and support Apple Intelligence, representing a significant upgrade to Apple's smart home lineup. Meanwhile, TCL, following its acquisition of a Guangzhou LCD facility, actively seeks to join Apple's supplier roster, further intensifying competition in the display market.
