The company is planning to start using its own custom displays in mobile devices as early as 2024, an effort to reduce its reliance on technology partners like Samsung and LG and bring more components in-house.
Apple aims to begin by swapping out the display in the highest-end Apple Watches by the end of next year, according to people with knowledge of the matter. The screens upgrade the current OLED – organic light-emitting diode – standard to a technology called microLED, and Apple plans to eventually bring the displays to other devices, including the iPhone.
LG Display shares fell as much as 4.1% on Wednesday after Bloomberg reported the news. Shares of Samsung Electronics Co, meanwhile, pared most of its gains during morning trading in Seoul. The microLED displays will be Apple’s first screens designed and developed entirely in-house. The company currently sources screens from a range of manufacturers, including Japan Display, Sharp Corp and BOE Technology Group Co, in addition to Samsung and LG.
Though Apple has designed the new displays and devised their manufacturing process, it will likely rely on an outside supplier to handle mass production. The company operates a 62,000-square-foot facility in Santa Clara, California — about 15 minutes away from its Apple Park headquarters — where it conducts test manufacturing of the screens. It has a similar research and development campus in Taiwan.
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