Apple’s Big Switch: All iPhones To Feature OLED Displays from 2025
Apple Inc. (AAPL) is set to make a significant shift in its iPhone lineup, transitioning all models, including the budget-friendly iPhone SE, to organic light-emitting diode (OLED) displays starting from 2025. This move marks the end of liquid crystal displays (LCDs) in iPhones, effectively shutting out Japanese panel suppliers Japan Display Inc. and Sharp Corp. from Apple’s handset business. The Cupertino giant is expected to rely entirely on Chinese and South Korean companies for its OLED displays.
Key Takeaways:
- Goodbye LCDs, Hello OLEDs: Apple will exclusively use OLED displays across its entire iPhone range, starting with the 2025 models.
- Goodbye Japan, Hello China & Korea: This shift signifies the end of Japanese panel suppliers’ role in Apple’s iPhone display supply chain.
- BOE & LG Display: The New Players: Apple has already started placing orders with China’s BOE Technology Group and South Korea’s LG Display Co. (LPL) for OLED displays destined for the upcoming iPhone SE.
- A Strategic Shift Amidst Competition: This move comes just days before Apple’s "Glowtime" event, scheduled for September 9th, where the company will unveil the highly anticipated iPhone 16 series and other products. This shift towards OLEDs could be seen as a move to compete effectively against rivals like Huawei, which is also slated to release a new flagship smartphone on the same day.
- Boosting iPhone Sales?: Analyst Gene Munster from Deepwater Asset Management predicts that the iPhone 16 could lead to a 10% acceleration in iPhone upgrades, ultimately leading to a potential 15% increase in iPhone sales next year, surpassing Wall Street’s expectations.
A New Era of iPhones
The transition to OLED displays marks a significant moment in Apple’s iPhone history. This move reflects the company’s commitment to offering superior display technology across its entire product line, regardless of price point. The switch from LCDs to OLEDs promises a more immersive viewing experience with enhanced color vibrancy, deeper blacks, and higher contrast ratios, which are crucial elements in attracting consumers who seek a premium smartphone experience.
What’s Behind the Shift?
Apple’s decision to move away from LCDs is driven by a number of factors. Firstly, OLED technology has significantly improved in recent years, becoming more affordable and efficient. With Chinese and South Korean companies dominating the OLED market, Apple is now able to procure high-quality panels at competitive prices.
Secondly, the smartphone market is becoming increasingly competitive, especially with the rise of Chinese brands like Huawei. Apple’s shift to OLED displays is seen as a way to maintain its position as a leader in the premium smartphone segment by offering superior display technology.
Impact on the Display Industry
While this move benefits Chinese and South Korean panel manufacturers, it comes at the cost of some job losses and potential economic downturn for Japanese display companies. The impact on the Japanese panel industry remains uncertain, as these companies are already seeking alternative markets and developing new display technologies. It remains to be seen if they can successfully adapt to the changing landscape of the smartphone display market.
The Future of the iPhone
The shift to OLED displays is expected to enhance the overall user experience of all iPhones, potentially leading to increased sales and solidifying Apple’s position as a dominant player in the high-end smartphone market. This move also signifies Apple’s willingness to embrace new technologies and adapt to the ever-changing demands of the mobile industry.
While the initial focus is on the upcoming iPhone 16 series, this move has long-term implications for the entire iPhone ecosystem. As Apple continues to invest in OLED technology and its supply chain, users can expect to see further refinements and advancements in display quality in future iPhone models. With the new display technology, Apple aims to deliver a truly immersive user experience for all its iPhones, regardless of price point. The future of the iPhone appears to be bright, with OLED displays playing a significant role in its continued success.
