It was reported that Apple has adopted a cautious approach towards the first batch of OLED screen iPad Pros, reducing order quantities by 30%. This decision impacts suppliers like LG Display, TSMC, Foxconn, and Novatek Microelectronics.
Originally, Apple planned to order 10 million units, but the latest adjustment brings the order down to between 7 and 8 million units. LG Display is significantly affected, with its order quantity nearly halved from 6 million to 3 million units. Samsung, however, remains largely unaffected, maintaining an order of 4 million units.
The next-generation iPad Pro, including 11-inch and 13-inch models, will be the first iPad products to feature OLED displays. Compared to existing LCD models, OLED offers higher brightness, higher contrast, and lower power consumption. Apple already uses OLED screens in its latest iPhone and Apple Watch models (excluding the lower-end iPhone SE).
Industry insiders suggest that Apple’s reduction in OLED panel orders for the iPad may be due to a cautious stance on initial demand. Although the exact pricing of the product is yet to be determined, it is likely to be more expensive than the current LCD iPad models.
The OLED panels for the new iPad models use a technology called Tandem, which consists of a dual-layer organic light-emitting layer structure. This technology offers higher brightness and a longer lifespan than single-layer OLED structures. Samsung Display had initially faced production issues that did not meet Apple’s specifications, but it has now indicated that it can complete mass production on time.
Details of the price negotiations between LG Display and Apple for the iPad Pro panels have not been disclosed, but the industry expects the cost to be 4 to 5 times that of smartphone panels. With smartphone OLED panels averaging between $50 and $60, supplying 5 million units at an estimated $200 each could lead to a sales increase of approximately $1 billion.
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