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Introduction to the Shift
In a significant move, LG Display, a pivotal player in the tech supply chain, is adjusting its production strategy for OLED panels. This shift comes on the heels of disappointing sales for the latest iPad Pro models, particularly the 11-inch (2024) and 13-inch (2024) versions. With initial sales promising, the decline has prompted LG to pivot its production efforts towards Apple’s most popular device: the iPhone.
Why the Change?
As iPad Pro sales taper off, LG Display plans to reconfiguration its existing OLED production lines to manufacture additional panels for the iPhone. This strategic adjustment not only conserves resources but also capitalizes on the soaring demand for iPhone OLED screens. By doing so, LG aims to produce an impressive 70 million iPhone OLED displays this year, marking a notable increase from last year’s total of 60 million.
The Technical Differences
While Apple’s iPads and iPhones may share the same sleek designs, their OLED panels are not created equal. iPad Pro displays are equipped with two emission layers, whereas iPhones utilize a singular layer. Moreover, iPads boast glass substrates with thin film encapsulation (TFE), while the iPhone’s displays utilize plastic substrates adorned with TFE. Fortunately for LG, shifting from iPad to iPhone OLED doesn’t entail a complete overhaul of production; some steps can be skipped, streamlining the process.
All in all, LG Display’s strategic pivot marks a crucial response to market dynamics. By reallocating production, they not only enhance their capacity for iPhone displays but also illustrate the ever-evolving relationship between suppliers and technological demand.
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