Top 3 Key Points:
- Apple canceled plans for a micro-LED Apple Watch due to production challenges.
- LG, a display supplier, invested heavily in preparation for the project.
- LG is now seeking compensation from Apple for the cancellation.
Earlier this year, Apple decided to halt its plans to introduce a micro-LED version of the Apple Watch. The project faced significant production challenges, particularly in manufacturing the advanced displays at the necessary scale.
LG, a key supplier for Apple, was set to provide a crucial component for these micro-LED displays. The company had invested heavily in preparing for this project, spending over $1.5 million to set up the required production facilities. However, with Appleās decision to cancel the project, LG is now seeking compensation for its investment.
Apple has been gradually upgrading its display technologies, moving from LCD to OLED in its devices, including the iPhone, iPad, and Apple Watch. The next step in this evolution was expected to be micro-LED, a technology that offers brighter screens, better color accuracy, and improved energy efficiency. While micro-LED remains a long-term goal for Apple, the complexity of producing these displays has led to delays.
Despite the setback, Apple may still pursue micro-LED technology in the future, potentially starting with high-end models like the Apple Watch Ultra. Meanwhile, LG’s compensation request may lead to negotiations where Apple could offer higher payments for other display components, like OLED screens, to maintain a strong relationship with its supplier.