Why Chinese-made iPhones could be banned in the U.S.
The U.S. might soon ban certain iPhones manufactured in China, according to a recent ruling by the International Trade Commission (ITC).
This federal agency, responsible for addressing unfair trade, has the authority to issue exclusion orders that block products linked to intellectual property violations. Specifically, the ITC is responding to a dispute between Samsung Display and BOE, a Chinese display maker, over allegations of technology theft pertaining to OLED panel production.
Samsung Display has accused BOE of using proprietary information without permission, and just recently, the ITC acknowledged that the evidence leaned in favour of Samsung's claims. The preliminary ruling finds that BOE likely misappropriated trade secrets. However, the story isn't over yet; a final decision by the ITC won’t come until at least November, and ultimately, it will be up to President Donald Trump to enforce any bans on BOE's products.
If the ban is approved, it will primarily target iPhone models utilising BOE-manufactured OLED displays. Oddly enough, while these displays are critical, Apple appears to have received assurance from BOE for the iPhone 17 Pro in the Chinese market only. However, BOE still supplies displays for several popular U.S. iPhone models, including the iPhone 15 series and the iPhone 16 lineup.
Interestingly, though the ban could have major implications, it’s still unclear whether the ITC's decision is limited just to displays or extends to smartphones equipped with those displays. This ambiguity raises concerns for Apple, as the company may find itself embroiled in legal issues tied to BOE's OLED technology.
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Industry experts have speculated that, even if Apple escapes the ban, the fallout could force the company to reconsider its relationship with BOE. The partnership has seen rough waters before; BOE’s earlier misstep with the iPhone 13 featuring unapproved adjustments to circuit designs nearly derailed their collaboration, after which BOE worked diligently to regain Apple’s trust.
Currently, BOE holds about 20% of Apple’s orders for iPhone displays. Should the ban materialise, BOE could shift its focus predominantly to China, potentially lowering prices to increase competitiveness against Samsung Display and LG Display, both of whom also supply Apple with screens.
This story is written and edited by the Global South World team, you can contact us here.
