Apple is set to transition entirely to organic light-emitting diode (OLED) technology for all iPhone models beginning in 2025. This strategic move will mark a complete departure from the liquid crystal displays (LCDs) that have been a staple in its devices for years. According to a recent report by Nikkei Business Daily, this transition will have substantial implications for both Apple’s supplier ecosystem and the broader display market.
The End of LCDs for iPhones
Apple’s decision to go all-in on OLED technology is a clear indication of the company’s commitment to enhancing the visual quality of its devices. OLED displays are renowned for their superior contrast ratios, deeper blacks, and vibrant colors compared to LCDs. They also offer improved energy efficiency and flexibility in design, which aligns with Apple’s goals of advancing display technology and refining user experience.
The transition will result in a significant shift in Apple’s supplier relationships. Historically, Japan’s Sharp Corp and Japan Display were major players in the LCD market, holding a combined 70% share of iPhone displays about a decade ago. However, as Apple phases out LCDs, these companies will see a drastic reduction in their role in Apple’s supply chain.
Impact on Sharp and Japan Display
Sharp Corp and Japan Display, which have been suppliers of LCD panels for Apple’s iPhones, will be excluded from the upcoming OLED-focused business. Both companies have faced challenges adapting to the evolving demands of the smartphone display market. Sharp and Japan Display currently do not mass-produce OLED displays for smartphones, a gap that Apple’s shift will only widen.
The report highlights that Sharp and Japan Display had previously supplied LCDs exclusively for the iPhone SE, but with Apple’s move towards OLED technology, these companies will no longer be part of Apple’s future display supply chain. This exclusion underscores the rapidly changing landscape of smartphone displays and the need for suppliers to innovate and adapt to remain relevant.
Apple’s New Display Partners
To meet its OLED display requirements, Apple has already started placing orders with new suppliers. The upcoming iPhone SE will feature OLED displays from China’s BOE Technology and South Korea’s LG Display. Both companies are well-positioned to provide the high-quality OLED panels that Apple seeks.
BOE Technology, based in China, has been making strides in OLED technology and is rapidly expanding its production capabilities. LG Display, a well-established player in the OLED market, has been a key supplier for various tech giants and is expected to play a significant role in Apple’s OLED supply chain.
Industry Implications
Apple’s decision to exclusively use OLED displays will have broader implications for the display industry. OLED technology, while offering numerous advantages, comes with higher production costs compared to LCDs. As Apple transitions to OLED, it is likely to push other smartphone manufacturers to follow suit, potentially accelerating the overall shift in the industry.
The move will also impact supply chain dynamics, particularly for LCD suppliers like Sharp and Japan Display. These companies will need to explore new markets or innovate their technologies to adapt to the changing demands of the smartphone industry.
Conclusion
Apple’s planned switch to OLED displays for all iPhone models starting in 2025 represents a major evolution in smartphone display technology. By moving away from LCDs, Apple aims to deliver superior visual experiences and align with its long-term strategic goals. This shift will undoubtedly reshape the landscape of the display industry, impacting suppliers and influencing market trends. As Apple continues to innovate, the broader tech community will be watching closely to see how these changes will play out and what they mean for the future of smartphone technology.
