Until then one of Apple’s main suppliers for its iPhones, the LCD screen manufacturer Japan Display is now focusing a little more on the virtual and augmented reality market, Bloomberg says in an article published on June 16.
While still limited, this market should grow enough to weigh a not inconsiderable weight, thinks the Japanese specialist screens. Above all, its LCD technology has imposed itself there against OLED screens thanks to its higher resolution while maintaining reasonable costs. Already present in a large part of recent headsets on the market (such as the Oculus Quest 2), it intends to develop its leadership there.
higher resolution and clarity
To make a difference, Japan Display offers screens of 1,200 pixels per inch, more than double the typical density of leading smartphone screens. VR headsets place the screen much closer to the human eye, and therefore require higher pixel density and clarity than smartphone screens.
According to Yoshihiro Watanabe, chief engineer at JDI for virtual reality, a high-quality VR experience requires a screen of at least 1000 pixels per inch. “Japan Display, is one of the few screen manufacturers, if not the only one, able to mass-produce such screens at a reasonable yield.“he told Bloomberg.
Clearly preferred LCD screens
Initially most headsets used OLED screens but major players such as HTC and Facebook have switched to LCD screens for their latest products. More economical, LCD screens have been widely favored by manufacturers in 2020. The technology should continue to dominate the market for the next five years, before giving way to MicroLED screens.
Part of the reason is that OLED display makers aren’t very interested in this small market. Even the most fashionable headsets struggle to exceed the few million in sales, which is nothing compared to smartphones which soar to hundreds of millions of copies every year.
AR / VR, a consolation in the face of the release of the iPhone market
The growth of the AR / VR market should allow Japan Display to partially offset its foreclosure of iPhones in favor of OLED screens. While the difference in resolution that the LCD allows may seem small on smartphones, the difference is crucial for AR / VR devices.
By losing its contract with Apple, Japan Display saw its revenue from smartphones reduced by 10, from 838 billion yen in March 2016 to 81 billion yen expected for this fiscal year. Last year, the company has moreover separated from the factory that she used mainly to produce displays for Apple.
Far from being as successful as the smartphone market, VR is already reporting to the Japanese manufacturer. “It’s hard to find a VR headset manufacturer that doesn’t have a partnership with usJapan Display’s VR manager Takeshi Harayama told Bloomberg. On the company’s latest earnings conference call in May, chief executive Scott Callon said he expected VR headset revenues pick up from the second half of the next fiscal year.
According to Bloomberg, the exception to the rule would be Sony, which plans to use Samsung Display’s OLED screens for its PlayStation VR 2.
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