Apple is poised to make a significant transition in its display technology by moving all iPhone models to organic light-emitting diode (OLED) screens, with the change expected to begin in 2025. This shift will include the upcoming iPhone SE 4, which has traditionally utilized liquid crystal displays (LCDs), effectively marking the end of LCD technology in Apple’s smartphone lineup.
According to reports from Nikkei Asia, Apple has begun placing orders for OLED displays from China’s BOE Technology Group and South Korea’s LG Display specifically for the iPhone SE. This decision signifies a notable shift in Apple’s supplier strategy, as it will exclude Japanese manufacturers Japan Display (JDI) and Sharp, both of which have historically played significant roles in the LCD market. A decade ago, JDI and Sharp provided approximately 70% of iPhone displays, but their influence has waned as Apple has increasingly adopted OLED technology for its premium models.
Currently, Samsung Electronics leads the OLED market for iPhones with about 50% share, while LG Display holds around 30%, and BOE accounts for approximately 20%. JDI and Sharp, which do not produce OLED screens at scale, will see their roles diminished as older models of the iPhone SE are phased out. This transition reflects a broader industry trend, as market research firm Omdia predicts that OLED panel shipments will surpass those of LCDs for smartphones in 2024.
Apple first introduced OLED technology with the iPhone X in 2017, gradually moving away from LCDs for its higher-end models. The reliance on LCDs by JDI and Sharp has significantly decreased, from nearly 200 million panels supplied annually in 2015 to around 20 million in 2023. This decline underscores the shift in consumer preferences towards OLED displays, which are known for their vibrant colors and superior contrast.
Adjustments by Japanese Manufacturers
In response to this shift, JDI and Sharp are re-evaluating their business strategies. JDI, which previously derived 60% of its revenue from Apple, is now focusing on LCDs for automotive applications and developing small OLED screens for devices such as the Apple Watch. Similarly, Sharp has reduced its LCD production, closing one plant and scaling back operations at another.
Apple’s commitment to OLED technology extends beyond iPhones; it has also incorporated OLED displays into its latest iPad Pro models, further emphasizing the industry’s movement towards this advanced display technology. The shift to OLED is driven by its capability to deliver high-definition content with exceptional color accuracy and contrast.
As Apple continues this transition, future iPhone models, including the highly anticipated iPhone 16 series set to be unveiled on September 9, 2024, are likely to feature OLED displays. This ongoing evolution highlights Apple’s strategy to enhance its product offerings with superior display technology, aligning with consumer demands for high-quality visual experiences.
