"Apple's Potential Single Chip" and "Apple's Move Towards In-House Displays."

The iPhone is made up of a mix of off-the-shelf and custom parts, with camera sensors and displays being off-the-shelf, while the battery is customized and the A16 Bionic chip and Taptic Engine are fully custom.

Custom parts in technology provide optimization, resulting in better efficiency and performance. Apple's switch to custom-designed Apple silicon pieces for their computers and taking back parts of the iPhone from suppliers like Samsung and LG Display is a supply chain optimization story that leads to better performance and revenue for Apple.

Multiple sourcing is a common tactic used by manufacturers to reduce their reliance on one manufacturer. Apple has handled the sourcing of off-the-shelf parts so well that we never notice a difference in the displays, but moving to completely customized displays may pose a challenge.

Apple is investing heavily in the development of microLED technology and wants to do all the development in their own facilities, unlike their previous approach of customizing existing technologies from other companies. This exclusive technology could potentially lead to a change in the list of manufacturers that Apple works with.

Apple is rumored to be designing its own chips for displays and radios, which could lead to more control and better products for Apple, but could also impact suppliers like Qualcomm and Broadcom. Consolidating all the radios into one chip could lead to efficiency gains and better battery life for users. Other companies may follow suit, but may not have as much cash to invest upfront.