Apple to Switch to
OLED from LCD Next Year, Japan Left behind
U.S.
tech giant to switch iPhone SE's screen to OLEDs in 2025
·
Lower-priced
iPhone SE models to OLED screens from liquid crystal displays (LCDs).
·
Two
Japanese panel suppliers, Japan Display Inc. (JDI) and Sharp, in the U.S. company's
handset business.
·
Apple
has begun placing orders for OLED displays for the upcoming iPhone SE from China's
BOE Technology Group and South Korea's LG Display.
·
Samsung
Electronics of South Korea holds about half of the iPhone OLED display market, while
LG Display has a share of about 30% and BOE around 20%.
·
OLED
displays create images using organic compounds in red, green and blue that emit
light on their own. Without the need for a backlight, they can deliver more vivid
colors and sharper contrast than LCDs.
·
OLEDs
will overtake LCDs by number of panels shipped for smartphones for the first time
this year.
·
JDI
is developing energy-efficient OLEDs, it currently only supplies small OLED displays
for devices such as the Apple Watch. JDI is now focusing on revamping its business
strategy around LCDs for automotive applications.
Apple
will use organic light-emitting diode (OLED) displays in all iPhone models starting
next year, switching even its lower-priced iPhone SE models to OLED screens from
liquid crystal displays (LCDs), Nikkei has learned.
The
move will bring an end to the involvement of two Japanese panel suppliers, Japan
Display Inc. (JDI) and Sharp, in the U.S. company's handset business.
JDI
and Sharp had a combined share of 70% in iPhone displays about a decade ago, but
recently have supplied LCDs for only the iPhone SE after Apple switched to OLED
displays for its premium models. South Korean and Chinese companies are the dominant
makers of OLEDs.
According
to multiple sources, Apple has begun placing orders for OLED displays for the upcoming
iPhone SE from China's BOE Technology Group and South Korea's LG Display. This change
marks the end of LCDs in iPhones, with the SE model scheduled for release next year
also featuring an OLED display, along with standard-priced iPhone models and premium
Pro models.
Samsung Electronics of South Korea holds
about half of the iPhone OLED display market, while LG Display has a share of about
30% and BOE around 20%. Neither
JDI nor Sharp mass-produces OLED displays for smartphones, and their supply of LCDs
for iPhones is expected to end with the discontinuation of old SE models.
OLED displays create images using organic
compounds in red, green and blue that emit light on their own. Without the need
for a backlight, they can deliver more vivid colors
and sharper contrast than LCDs. With
the rising demand for smartphones to watch movies and sports, and to play games,
Samsung began selling OLED displays as a replacement for LCDs in 2009.
Apple
first used OLED panels in the iPhone X, which made its debut in 2017. Since then,
the company has switched from LCDs to OLEDs for its premium models. Around 2015,
JDI and Sharp delivered nearly 200 million LCDs annually for iPhones, but that figure
had dropped to around 20 million by 2023.
According
to U.K.-based market researcher Omdia, OLEDs will overtake LCDs by number of panels shipped for smartphones
for the first time this year.
As
iPads and other products began adopting advanced OLED screens, Apple is expected
to further cut its LCD purchases.
Japanese
manufacturers until recently counted on Apple as their main customer and expanded
production in response to rising iPhone sales.
JDI,
for example, once relied on Apple for 60% of its revenue. However, the transition
to OLEDs for iPhones resulted in overcapacity. The company has recorded net losses
for 10 straight years through the year ended March. Although JDI is developing energy-efficient OLEDs, it currently only
supplies small OLED displays for devices such as the Apple Watch. JDI is now focusing
on revamping its business strategy around LCDs for automotive applications.
Sharp
is scaling back its LCD business. The company in August ceased operations at its
Sakai plant in Osaka, which produced large LCDs for TVs, and reduced capacity at
its Kameyama plant in Mie prefecture.