BENGALURU: Apple’s decision to entirely transition to organic light-emitting diode (OLED) displays for all iPhone models by 2025 marks a pivotal technological advancement for the company and signifies a transformative moment in its product offerings.
As detailed by Nikkei, the strategic move underscores the end of the company’s reliance on liquid crystal displays (LCDs), a staple in its lower-end models, thus reshaping both its technological capabilities and supplier relationships.
Since the release of the iPhone 12 series, Apple has progressively integrated OLED technology into its devices, leaving out only the SE models.
The advantages of OLED over LCD are manifold; this technology delivers more vibrant colors, enhanced contrast, and superior energy efficiency. Notably, the Pro and Pro Max models incorporate Apple’s advanced ProMotion OLED technology, boasting refresh rates of up to 120Hz, thereby facilitating smoother and more responsive visual interactions compared to the standard refresh rates of 60Hz or 90Hz.
The appeal of OLED technology, characterized by its exceptional colour fidelity and contrast ratios, aligns seamlessly with the evolving demands of users who prioritize high-definition content consumption.
As many manufacturers across the smartphone and television sectors gravitate towards OLED, Apple’s commitment to this technology signals its recognition of shifting consumer preferences and market trends.
The company has strategically begun sourcing OLED panels from established suppliers like BOE Technology of China and LG Display of South Korea, marking a new chapter in its supply chain dynamics and supplier base.
The transition, however, disrupts long-standing business relationships with key LCD suppliers, Japan Display (JDI) and Sharp, which have historically dominated the iPhone display market.
A decade ago, JDI and Sharp accounted for a combined 70 per cent of Apple’s iPhone screen suppliers, largely due to their LCD offerings. Their inability to produce OLED panels at scale places them at a competitive disadvantage in light of Apple’s pivot towards this innovative display technology.
The journey towards OLED commenced with the launch of the iPhone X in 2017, following which the technology was integrated into premium models and most recently, into the latest generation of iPad Pro.
The shift not only signifies a technological evolution but also represents a strategic redirection aimed at enhancing user experience throughout Apple’s diverse ecosystem.
By embracing OLED technology, Apple reaffirms its role as a leader in innovation while simultaneously reshaping its supply chain dynamics in an increasingly competitive landscape.
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