LG display Shifts Gears: focusing on iPhone OLED Production
South Korean tech giant LG Display is making a strategic shift in it’s production lines, prioritizing the manufacturing of OLED screens for iPhones over iPads. This move is expected to significantly boost its output for Apple’s flagship product while simultaneously reducing costs.
Currently, LG Display utilizes its E6-1, E6-2, and E6-3 production lines to manufacture iPhone OLED panels. Each line boasts a remarkable capacity, producing up to 15,000 Gen 6 glass substrates per month. Adding another dedicated iPhone OLED production line woudl represent a considerable investment, estimated at approximately $1.4 billion (2 trillion Korean won). This contrasts with the $2.3 billion investment previously made for the iPad OLED panel production line, highlighting the cost-saving aspect of this strategic realignment.
The enterprising goal for LG Display is to supply Apple with a staggering 70 million iPhone OLED displays in 2025. This represents a notable increase from the mid-60 million units shipped last year and the 51.8 million delivered in 2023. This surge in production underscores the growing demand for high-quality OLED displays in the smartphone market.
The production process for iPhone and iPad OLED panels differs significantly. iPad displays incorporate two emission layers, compared to the single layer found in iPhone panels. furthermore, iPad OLED panels utilize a glass substrate with thin-film encapsulation (TFE), while iPhone displays employ a plastic substrate with TFE. This difference in materials and construction allows LG Display to streamline the conversion process, requiring only the addition of specific equipment and the omission of certain steps.
Due to the varying material requirements, production of iPhone and iPad OLED panels will occur at different times. With lower-than-anticipated demand for the 2024 iPad Pro models, LG Display plans to maintain a stock of iPad OLED panels while transitioning its production line to focus on the higher-demand iPhone models. However,this shift hinges on Apple’s approval of the new iPhone OLED production line,with a February deadline for this crucial decision. The existing iPad OLED inventory provides a buffer until the approval is secured.
The 11-inch and 13-inch iPad Pro models,released in May 2024,marked the debut of OLED displays in the iPad lineup. This technological advancement underscores Apple’s commitment to providing consumers with cutting-edge display technology.
this strategic move by LG Display highlights the dynamic nature of the tech industry and the intense competition to meet the ever-growing demand for high-quality smartphone displays. The success of this shift will be closely watched by industry analysts and consumers alike.
