LG Display has stopped making LCD iPhone screens and has given up hope of doing so in the future, according to a supply chain report. The company has separately stated that it may set up its own smartphones.
LG has a long but somewhat troubled history of making iPhone screens …
Background
LG once competed with Samsung as a major supplier of iPhone screens, and Apple took advantage of the fact that two companies were able to meet both technical and volume requirements. Two suppliers provided redundancy in Apple’s supply chain, as well as giving the company the bargaining power of awarding orders to the two companies.
Things changed when Apple switched to OLED with the iPhone X. LG was too late to recognize the industry trend from LCD to OLED, and was ill-prepared for Apple’s switch. This left Samsung as the sole supplier of Apple’s flagship phones for some time.
LG eventually managed to catch up and win Apple OLED orders, but even then experienced technical difficulties – and Samsung still maintains a technical lead.
LG stopped making LCD iPhone screens
LG also continued to make LCD screens for Apple’s older iPhones, but a report in TheElec says he stopped it in the third quarter of last year, and has now abandoned the plan to try again.
TheElec has learned that LG Display has stopped production of liquid crystal LCD panels (iPhones) […] LG Display stopped production of the iPhone LCD on its AP3 series at Gumi in the third quarter. The line also stopped making panels for other phones in the fourth quarter.
For LG Display, the LCD line for iPhones had a low profitability. Apple has also previously used OLED panels for organic light emitting diodes (OLED) for its iPhone 12 series. Sales of iPhones with OLEDs are also expected to be larger this year than those with LCD panels.
Apple’s LCD model, iPhone SE, launched last year, would rather use LCD panels from JDI and Sharp. LG Display previously tried to supply LCD for the iPhone SE 2019 model, but failed.
The factory that manufactures the LCD screens is reportedly used again to make display panels for cars. LG is the current leader in the field of car shows of nine inches or larger.
Apple will not have a shortage of LCD suppliers, but Japan Display and Sharp are taking the plunge.
Photo: Felipe Bustillo on Unsplash
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