Earlier this year, it was reported that Apple had abandoned plans for an Apple Watch with micro-LED technology because it would be too difficult to produce in the required quantities.
The display supplier LG was supposed to produce a key component for this display and is now demanding compensation for the cancellation of the project…
Apple’s push towards micro-LED
Apple has yet to complete the transition to its third display technology, OLED:
- Originally, an LCD with conventional backlight was used.
- Then we moved on to the LCD with mini-LED backlight
- The Apple Watch, iPhone and the latest iPads currently use OLED
- With MacBooks in connection
However, Apple is already planning an even more advanced display technology called Micro-LED. This offers even brighter displays with greater color accuracy, durability and energy efficiency and without the burn-in problems of OLED.
Micro-LED Apple Watch Cancellation
As with OLED before, the usual approach would be to start with the smallest screens and work your way up from there. That would put an Apple Watch with micro-LED technology in the lead, almost certainly an Ultra model with a premium price tag.
That’s probably still the plan long-term, but Apple seems to have decided it needs a slower pace. Current plans to launch a micro-LED Apple Watch were reportedly canceled earlier this year.
Despite all their advantages, MicroLED screens were difficult to produce in sufficient quantities. Manufacturing them required cutting-edge technology and a complicated process called LED transfer – the placement of pixels in the display. Although Apple owned the design and manufacturing process of the MicroLED screens, the company contracted a number of partners to handle mass production and tasks such as LED transfer.
LG allegedly demands compensation
Display partner LG was to manufacture the backplanes for the Apple Watch displays. This is the transistor arrangement that switches the individual pixels on and off.
As far as we know, Apple has not placed any orders with LG, but it has given the Korean company enough confidence in its plans to invest more than a million dollars in preparation for production. The electric The company is now reportedly demanding damages from Apple.
It was discovered that LG Display demanded compensation from Apple for suspending the Micro-LED development project for the Apple Watch in the first half of this year (…)
It is known that the amount invested by LG Display to carry out the micro-LED backplane process is tens of billions of won (over US$1.5 million), taking into account the opportunity cost.
In the second half of 2022, LG Display moved some of its equipment from Gumi, Gyeongsangbuk-do to Paju, Gyeonggi-do. At that time, the development plan for the Micro-LED Apple Watch was taking shape. LG Display set up a task force (TF) in Paju to make room for the Micro-LED backplane process and hire workers. Several of LG Display’s equipment partners also prepared to deliver equipment at the same time.
While there doesn’t seem to be any strict legal liability, the report suggests that Apple will likely increase the price it pays LG for OLED displays for iPhones and iPads to compensate for the loss. The iPhone maker has an interest in keeping its suppliers at least somewhat satisfied.
Photo by Ricardo Resende on Unsplash
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