Introduction

In a significant shift reflecting the current landscape of Apple’s product demand, LG Display is set to retrofit its iPad AMOLED production line to manufacture OLED displays for the iPhone, as reported by industry sources in late 2024.

Decline in iPad Demand

The anticipated move comes in response to Apple slashing its orders for OLED panels, specifically due to diminishing demand for iPad Pro models. Recent trends have shown that the sales of Apple's iPad Pro devices haven't met projections, leading the tech giant to reduce its OLED panel orders from its main suppliers, Samsung and LG.

Strategic Shift to Smartphone Displays

As part of a strategic pivot, LG Display plans to ramp up its production of smartphone displays, targeting a supply of 70 million AMOLED screens for iPhones in 2025—an increase from 65 million units in the previous year, and a notable rise from the 52 million units produced in 2023.

Utilizing IT AMOLED Technology

This conversion process will utilize LG’s IT AMOLED production line, which is seen as an efficient and cost-effective solution. By redirecting the technology developed for the IT line, LG can enhance its production capacity without incurring hefty expenses typically associated with new manufacturing setups.

Advanced Capabilities Without Changes

Interestingly, the IT OLED line is equipped with advanced technology that facilitates the production of tandem OLED displays, although LG plans not to employ this feature for iPhone panels.

Adaptation and Costs

Furthermore, while the current IT line utilizes thin glass substrates, Apple's smartphone OLEDs are made with polyimide. Adapting this line will necessitate some alterations, but the overall investment is expected to be significantly lower than constructing an entirely new production line.

Future Outlook

Additionally, the timeline for beginning this new phase of production appears promisingly short. As Apple continues to refine its product offerings and responds to shifting consumer behaviors, LG Display’s proactive strategy to adjust its manufacturing capabilities could prove instrumental in maintaining strong relationships with one of its key clients.

Conclusion

Will this move secure LG’s position in the competitive display market as tech demands evolve? Only time will tell!