Apple Fully Transitions to OLED: LCD Era Ends, Sharp and JDI Exit iPhone Supply Chain

Apple Fully Transitions to OLED: LCD Era Ends, Sharp and JDI Exit iPhone Supply ChainAccording to media reports citing sources, Apple will completely abandon the use of LCD (Liquid Crystal Display) screens in iPhones. All iPhones sold next year and beyond will feature OLED (Organic Light-Emitting Diode) displays

Apple Fully Transitions to OLED: LCD Era Ends, Sharp and JDI Exit iPhone Supply Chain

According to media reports citing sources, Apple will completely abandon the use of LCD (Liquid Crystal Display) screens in iPhones. All iPhones sold next year and beyond will feature OLED (Organic Light-Emitting Diode) displays. This news signifies the end of LCD screens for the iPhone SE series, as Apple fully embraces OLED technology.

Apple first utilized OLED displays on the iPhone X in 2017. Since then, OLED has become prevalent in Apple's high-end models. However, the iPhone SE series continued to use LCD screens. Now, with Apple ordering OLED displays from BOE and LG for the new generation iPhone SE, LCD iPhones are about to become a thing of the past.

This shift will significantly impact Apple's supply chain. Samsung currently holds about half of the iPhone OLED display market share, followed by LG with around 30% and BOE with about 20%. Sharp and Japan Display (JDI) previously supplied LCD screens to Apple, but neither company manufactures OLED displays for smartphones in large volumes. This means that Sharp and JDI will be excluded from iPhone supply chain operations after the discontinuation of the older iPhone SE.

Roughly a decade ago, Sharp and JDI combined held a 70% share of the iPhone display market. Around 2015, JDI and Sharp shipped approximately 200 million LCD screens for iPhones annually. However, this number has decreased to around 20 million by 2023. With iPads and other products gradually adopting OLED displays, Apple is expected to further reduce its LCD procurement.

JDI previously relied on Apple for 60% of its revenue. As Apple abandons LCD screens, the company faces an overcapacity situation. As of March this year, JDI has recorded net losses for ten consecutive years. Although JDI is also developing OLED technology, it currently only supplies small OLED displays for devices like Apple Watch. The company is currently focusing on adjusting its business strategy around automotive applications for LCD.

Sharp is downsizing its LCD business. In August, the company shut down its Sakai plant in Osaka, which manufactured large LCDs for televisions. Sharp has also reduced production capacity at its Kameyama plant in Mie Prefecture.

Apple's decision to fully switch to OLED displays will significantly impact the LCD industry. LCD suppliers like Sharp and JDI, who have long relied on Apple, will face significant challenges. They need to find new markets and technologies to survive. Meanwhile, OLED display suppliers like Samsung, LG, and BOE will face new development opportunities. They will have a chance to further expand their share in the smartphone market.

Apple's complete shift to OLED displays marks a new phase in display technology development. OLED displays boast advantages such as a wider color gamut, higher contrast, lower power consumption, and a thinner profile, offering a superior display experience for smartphones. As technology continues to advance and costs decrease, OLED displays are expected to become the mainstream display technology in the future.