Apple Transitioning iPhone SE to OLED: A Major Shift in Display Technology
iPhone SE’s Switch to OLED
Apple has been slow to embrace OLED display technology across its iPhone range, but that is about to change.
The Impact on Suppliers
The upcoming iPhone SE will be the last model to adopt OLED technology, spelling tough times for Japan Display and Sharp—two major suppliers of LCD screens for iPhones. Historically, these companies have dominated the LCD market with a 70% share in Apple’s supply chain. However, neither company manufactures OLED panels for smartphones, limiting their ability to adapt to Apple’s changing requirements.
Shift in Supplier Landscape
Apple has started placing orders for OLED displays from Chinese manufacturer BOE and Korea’s LG. Currently, Samsung supplies around half of the OLED panels for iPhones, with LG holding a 30% share and BOE covering the remaining 20%. It appears that for the iPhone SE 4, Apple might rely significantly on BOE, as the company has reportedly outbid Samsung for these orders.
Market Trends and Predictions
According to UK-based market researcher Omdia, OLED panels are expected to surpass LCDs in smartphone shipments this year. This shift, although seemingly overdue, indicates a broader trend toward OLED technology in the smartphone industry.
Design Changes and New Features
The iPhone SE 4 is anticipated to enter mass production by October this year, with an official unveiling likely in early 2025. Unlike its predecessors, the next iPhone SE will adopt a design similar to the iPhone 14. This model will feature an LTPS OLED screen, USB-C port, Face ID, and other advanced specifications.
Consequences for Japan Display and Sharp
In 2015, Japan Display and Sharp were leading LCD suppliers for iPhones, delivering nearly 200 million panels annually. This figure dropped dramatically to around 20 million units in 2023. With the discontinuation of LCD iPhones, these firms are scaling back their operations and considering diversification into other industries, such as automotive, to mitigate their losses.
Future of iPhone Displays
The future of iPhone displays seems firmly rooted in OLED technology. With Apple likely to increasingly rely on BOE and LG for its display needs, the evolution of the iPhone SE and other models will pave the way for more advanced, high-definition screens on all Apple devices.