One of Apple’s main suppliers, LG Display, has decided to pivot its main OLED production line due to flagging demand for the iPad Pro M4, the first model in the lineup to offer the technology. organic light-emitting diodes. The company plans to convert the factory to focus on producing OLED displays for iPhone 16 and 16 Pro, as reported The Elec.
A strategic decision
Originally designed to manufacture OLED panels for tablets and PCs, the line has seen reduced activity due to poor sales of Apple’s new iPad Pro M4 models. Adapting to iPhone production is considered a strategic decision, in order to avoid idling and/or laying off hundreds of employees.
The M4 iPad Pro, launched in May with 11- and 13-inch options, represented Apple’s first foray into using OLED for large-screen devices. Before that, only the iPhone and Apple Watch were equipped with it. Initial projections called for 10 million iPad Pros to ship in 2024, but were revised downward to 6.7 million in October.
By repurposing the existing line, LG Display avoids the expense of establishing a new production plant, saving approximately 2 trillion won (1.4 billion euros). The initial investment in this OLED line was 3.4 trillion won, but the transition requires only minor adjustments.
LG Display aims to maintain adequate iPad OLED stock levels through February while awaiting Apple’s green light for the production shift. The company has set a goal of supplying 70 million iPhone OLED panels in 2024, an increase from the 60 million planned in 2023 and the 51.8 million planned in 2022.
The advantage of OLED
OLED panels offer superior brightness, contrast and energy efficiency, contributing to better battery life. The technical distinction between the iPad and iPhone OLEDs includes the iPad’s use of glass substrates with lined thin film encapsulation (TFE), versus the iPhone’s polyimide substrate with a single emission layer.
Obviously, the mixed success of the iPad Pro M4 is not due to the display quality, but to its price. Apple has significantly increased the price of its two Pro variants. The 11-inch starts at €1,219 instead of €899, while the 13-inch starts at €1,569 instead of €1,219.
To boost sales, Apple would develop an iPad Air OLED, the release of which could be planned for 2026. The iPad mini 8 would follow, which would make it possible to offer volume to suppliers and therefore, consequently, to lower prices. costs. A foldable model is also possible.
