LG & Apple
The South Korean trade press is reporting that LG Display has won an order from Apple to supply LTPO OLED small panel displays for the iPhone 14. LTPO allows for the display to support a variable refresh rate system that reaches a maximum of 120 Hz, allowing for both a longer battery life and less blur during image playback. Samsung Display (pvt) has been the sole vendor of LTPO displays to Apple and was expected to hold the same exclusive position in 2022, but it seems LGD has been qualified by Apple and will now supply at least a portion of the LTPO displays for the iPhone 14 Pro Max model, while SDC will remain the sole supplier for the iPhone 14 Pro.
Both LG Display and BOE (200725.CH) have been vying for a place in Apple’s LTPO display supply chain, and while both have been supplying LTPS OLED displays for the current iPhone line, neither was expected to be ready for volume LTPO display production in 2022. LG Display has been part of Apple’s LTPO development project but had yet to prove it was able to produce such displays with a high enough yield that Apple would qualify them as a supplier. BOE is working toward the same goal but has yet to commercialize its LTPO process for volume production, although it has entered Apple’s LTPS OLED supply chain this year and will expand its volumes in 2022.
On an overall basis, LG Display might not see an increase in the number of small panel overall displays it supplies to Apple in 2022 as the conversion of production lines from LTPS to LTPO will reduce the available capacity for LTPS displays, but the higher value LTPO displays will likely improve average small panel OLED ASP, and more importantly prove to Apple that LGD can become a major supplier of LTPO displays in the following years. Of course, Apple will use the fact that it now has a 2nd LTPO display supplier to work down price with SDC, but the real competition will occur when BOE is able to be qualified for Apple’s LTPO displays, as Apple will squeeze SDC further as long as there are no display problems in 2022.
Both LG Display and BOE (200725.CH) have been vying for a place in Apple’s LTPO display supply chain, and while both have been supplying LTPS OLED displays for the current iPhone line, neither was expected to be ready for volume LTPO display production in 2022. LG Display has been part of Apple’s LTPO development project but had yet to prove it was able to produce such displays with a high enough yield that Apple would qualify them as a supplier. BOE is working toward the same goal but has yet to commercialize its LTPO process for volume production, although it has entered Apple’s LTPS OLED supply chain this year and will expand its volumes in 2022.
On an overall basis, LG Display might not see an increase in the number of small panel overall displays it supplies to Apple in 2022 as the conversion of production lines from LTPS to LTPO will reduce the available capacity for LTPS displays, but the higher value LTPO displays will likely improve average small panel OLED ASP, and more importantly prove to Apple that LGD can become a major supplier of LTPO displays in the following years. Of course, Apple will use the fact that it now has a 2nd LTPO display supplier to work down price with SDC, but the real competition will occur when BOE is able to be qualified for Apple’s LTPO displays, as Apple will squeeze SDC further as long as there are no display problems in 2022.
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