It is reported that Apple plans to use cheaper LCD screens on most iPhone models next year, and postpones the full switch to high-tech organic light-emitting diode (OLED) screens, which also reflects consumer sensitivity to price.
According to the Wall Street Journal, Apple is expected to launch an LCD model and two OLED models this fall, and the LCD model is expected to account for most of its iPhone sales. It is expected that Apple will continue to use LCD screens next year, which is completely inconsistent with the previous report on the complete transition to OLED.
Apple announced the news after it announced in March that it was testing its own internal MicroLED screen.
Apple's decision to insist on using cheaper LCD screens has brought more uncertainty to its screen suppliers; in addition, Apple's decision to produce its own screen has jeopardized the interests of many suppliers.
Apple's three LCD suppliers, including Sharp, LG Display and Japan Display, have fallen sharply in the past year as they are expected to not use these products in their OLED screens. Subsequently, in March of this year, when Apple was already testing its own MicroLED screen, many monitor suppliers including Samsung, Sharp and LG Display fell again. The move also hurts the interests of General Display and Synaptics. After the report showed that Apple will use more LCD screens than expected, the price of General Display Company, which provides OLED display materials, began to fall.
The Wall Street Journal pointed out that Apple's decision to delay the implementation of OLED screens may not necessarily bring opportunities to LCD suppliers. For example, LG Display has plans to invest in OLED screens.
Apple has been facing a shortage of supplies in the past. If suppliers have to change their production plans, Apple may face a supply shortage again. It is reported that Japan Display raised $320 million in April to meet the expected demand for its advanced LCD monitors.
According to recent reports, Apple has already communicated its transformation plan to its suppliers, including plans to reduce parts purchases by nearly 20% from suppliers this year. At the same time, the uncertainty of the continued expansion of Apple's supply chain will make the new iPhone model more expensive than ever.