Apple was reportedly considering an Apple Watch with a microLED display, aiming to move away from the long-running OLED panels. However, the company apparently canceled its plans due to technical difficulties and potential supply chain constraints, which led the company to forgo its plans. Apple selected LG as its main microLED supplier, and after the product cancellation, it incurred hefty costs. LG is now seeking compensation from Apple due to the costs associated with the testing and production of the panels.
LG wants Apple to pay for the microLED developmental costs, as the iPhone maker has canceled the technology for the Apple Watch
LG made strides in developing microLED panels for Apple, and significant investment was made to prepare for the project that never saw daylight, as reported by The Elec. The supplier bought 14 patents in the United States to secure the technology from Taiwan's Ultra Display, and the entire cost has been left uncatered so far. It remains to be seen how Apple will respond to the claims and if any compensation will be made, as LG is also the company's leading supplier for the iPhone's OLED displays.
In addition, LG transferred its equipment from Gumi in Gyeongsangbuk-do to Paju in Gyeonggi-do, including further freight costs, to secure space for the microLED backplane process. The supplier also hired a specialized task force to work on the project, and it is unclear if the personnel were readjusted or forced to quit after the cancellation.
LG has reportedly spent billions of won in order to prepare for Apple's microLED displays for the Apple Watch. It was reported that Apple was unaware of the economic viability of the new display technology despite its obvious benefits over the standard OLED panels, which are still better than LCD displays. The microLED panels are brighter and more color-accurate than the traditional OLED panels, but they are also a lot more expensive, which would have possibly increased the price of the Apple Watch as well.
Apple was expected to start its microLED transition with the Apple Watch, and once the technology gained momentum in production and cost, it would have ported it to the iPhone and iPad lineup. It is unclear if the company is moving away from microLED displays for good or if it is reserving the technology for a later day. For now, LG is seeking compensation from Apple for the developmental and additional costs, but it remains to be seen if the iPhone maker will pay or strike another deal.
