Apple supplier LG Display is making a significant change to its production line due to lower-than-expected demand for the OLED iPad Pro and plans to reorganize the line to produce iPhone displays. According to The Elec’s report, the line, which currently produces OLED panels for tablets and computers, is facing declining operation rates due to low demand. LG Display will therefore try to optimize costs by adapting the line to iPhone OLED panel production.
LG focuses on iPhone in OLED production
The 11-inch and 13-inch OLED iPad Pro models launched in May 2024 and were seen as an important step in Apple’s first use of OLED technology in larger displays. Originally projected to ship 10 million units in 2024, market research firm Display Supply Chain Consultants (DSCC) revised that estimate to 6.7 million units in October.
LG Display will make this change by adapting its existing $3.4 billion OLED line with minimal modifications, rather than investing in a new production line worth around $1.5 billion. OLED technology offers advantages such as higher brightness, higher contrast ratio with deeper blacks, and improved power efficiency for longer battery life. Technically, the main difference between iPad and iPhone OLED panels lies in their substrate structure. iPad displays use a glass substrate and thin film coating (TFE), while iPhone panels are differentiated by a polyimide substrate and a single emission layer.
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According to a report from Taiwan, LG Display aims to maintain sufficient stock of iPad OLED panels by February and get Apple’s approval for this production line change. The company plans to supply 70 million iPhone OLED panels in 2024, up from just over 60 million last year and well above 51.8 million in 2023.
Apple is rumored to launch an iPad Air model with an OLED display in 2026, although this transition could be delayed by more than a year due to the decline in OLED iPad Pro sales. It is also expected that Apple’s 14-inch and 16-inch MacBook Pro models will switch from mini-LED to OLED in 2026 at the earliest.
