LG Expanding OLED Production as Apple Plans to Move More Devices to Use This Technology in the Future
LG is rumored to be investing a sizable amount just so it can mass produce OLED screens for Apple to use in future devices. According to numerous reports, the California-based giant aims to gravitate to OLED technology for iPads, and though the transition will be slow, LG likely wants to be ready for when it starts receiving orders.
LG Display May Invest $2.81 Billion to Produce OLED Panels for Apple
According to ITHome, which claims to have spotted regulatory filings of LG’s investment, the Korean manufacturer aims to invest 3.3 trillion won or $2.81 billion for OLED production expansion. Since Apple’s partnership could become a lucrative opportunity, it can be said that the investment made was primarily done to secure future dealings with the iPhone maker.
However, the increase in production capacity is reported to happen by March 2024, and by that time, Apple may have already secured supply chain deals with the likes of BOE. Samsung will likely continue its run of being the company’s primary OLED supplier, with a previous rumor claiming that both it and Apple have secured a partnership in which Samsung received 120 million OLED orders for future iPad models.
Apple is expected to take advantage of mini-LED for iPads at this time, but according to a previous report, it will switch to OLED in 2023. A previous investigation showed that mini-LED on the premium tablet causes a blooming effect due to the lack of dimming zones. Ross Young commented that this ‘halo’ effect could be mitigated with the use of OLED technology, something which Apple could be testing on a tablet prototype this very moment.
Unfortunately, as advantageous as OLED would be on an iPad, it comes at a cost, literally. Assuming Apple only has Samsung to rely on for iPad OLED panels, it could be a costly venture, which is why LG’s investment is an important development for Apple as it not only will provide LG with sizable orders, but Apple will gain a stronger negotiation hand when it comes to pricing of this component.
Unfortunately, we do not know if Apple will pass those savings to customers, but when the first OLED iPad arrives in 2023, we will update our readers, so stay tuned.
News Source: ITHome