Apple Inc is in discussions with BOE Technology Group Co to supply next-generation displays for future iPhones, a key component that's being provided by a Samsung Electronics Co unit, sources familiar with the talks said.

Apple has been testing BOE's active-matrix organic light-emitting diode screens for months but hasn't decided if it will add the Chinese company to its roster of suppliers, one of the sources said.

BOE, one of the country's biggest screen makers, is spending close to 100 billion yuan ($14.5 billion) building two next-generation screen plants in the southwestern province of Sichuan in anticipation of future business.