LG to Shift OLED Production Focus from iPads to iPhones

LG Display is reportedly planning to reconfigure its OLED production lines to prioritize making panels for iPhones rather than iPads. According to a report by The Elec, this adjustment comes in response to a slowdown in demand for Apple’s latest OLED iPad Pro models.

Why the Shift?

Demand for Apple’s OLED iPads has softened, leading to lower operation rates at LG’s production lines originally designed for these devices. Instead of letting the lines sit underutilized, LG aims to repurpose them for iPhone OLED panel production.

This move not only helps LG save costs but also increases its overall capacity for producing OLED panels, a key component in Apple’s highly popular iPhone lineup.

The Production Process

Producing OLED panels for iPhones and iPads involves some differences, and LG’s strategy takes this into account:

• iPad OLED Panels: Use a glass substrate with thin-film encapsulation (TFE) and two emission layers for enhanced durability and brightness.
• iPhone OLED Panels: Use a polyimide substrate with TFE and a single emission layer, optimized for thinner and more flexible designs.

To make the switch, LG plans to skip certain processes specific to iPad panel production and add equipment for the touch process required by iPhones.

Cost Considerations

Reconfiguring the production line to support iPhone OLED panels is also a cost-effective choice. Building a new Gen 6 line for iPhone panels would cost around 2 trillion won ($1.362 billion USD), significantly less than the 3.4 trillion won ($2.316 billion USD) needed to create a dedicated IT OLED line for iPads.

By adapting existing facilities, LG can meet Apple’s needs for iPhone panels without the hefty investment required for entirely new infrastructure.

What Happens Next?

LG reportedly has enough inventory of iPad OLED panels to supply Apple until February 2025, giving the company time to make the necessary adjustments. However, this shift will require Apple’s approval, as the tech giant maintains strict quality control over its components.

Why This Matters

This strategic pivot highlights LG’s ability to respond to market changes and align its production with Apple’s needs. As demand for iPhones continues to outpace other product lines, boosting OLED panel production for iPhones ensures both companies can meet consumer expectations.

For Apple, this move underscores the brand’s reliance on LG as a key supplier of high-quality OLED panels, supporting the seamless delivery of its iconic products.

Final Thoughts

LG’s decision to reconfigure its OLED production lines showcases smart adaptability in a competitive market. By focusing on iPhone OLED panels, the company is positioning itself to meet Apple’s growing demands while optimizing production costs. As this adjustment takes shape, it will be interesting to see how it impacts Apple’s future product launches and LG’s role as a leading OLED supplier. Stay tuned!