Korean display makers to benefit from Apple’s shift to OLED displays

LG Display’s 17-inch foldable OLED panel for laptops [Courtesy of LG Display]

Apple Inc., a major player in the tablet market, is set to expand its use of organic light-emitting diode (OLED) displays, not only in iPads but also in MacBook models, starting from next year.

The move is igniting positive signals for major Korean display manufacturers as it will allow them to widen the gap with Chinese rivals that have been chasing closely behind.

According to sources on Monday, Apple plans to launch OLED iPads in 2024 and OLED MacBooks in 2025.

Last week, Nikkei reported statements from a senior Apple executive saying, “Starting with high-end iPads next year, OLED adoption will gradually begin, and from the second half of 2025, we plan to apply it to MacBooks.”

Aligning with these plans, Korean display companies are ramping up preparations for mass production of OLED panels for tablets.

According to sources, LG Display Co. is in the final stages of expanding its Paju 6th-gen OLED line and aims to supply OLED panels for iPads in the first half of next year.

Samsung Display Co. is also set to commence OLED panel supply from February 2024.

The initial beneficiaries of Apple’s aggressive OLED transition are likely to be Korean companies due to the insufficient capabilities of Chinese firms in supplying OLED panels for IT devices.

Industry insiders project the scale of OLED panels for iPads next year to reach around 10 million units. LG Display and Samsung Display are expected to secure a ratio of around 60 percent and 40 percent, respectively, among the supplies.

High-end OLED technology is anticipated for new-generation iPads, considerably raising the entry barrier.

The new products are expected to feature the two stack tandem OLED technology, stacking two organic layers, a pioneering development by LG Display, which has been applied in the car electronics business.

LG Display announced a 1.36 trillion won ($1.04 billion) capital increase to secure investment funds and stabilize its financial structure.

Meanwhile, Chinese companies that have been focusing on premium liquid crystal displays such as MiniLEDs have faced an inevitable blow from Apple’s shift.

They have begun strategic transitions towards OLEDs.

BOE, the leading Chinese display company, recently announced an investment of 63 billion yuan in constructing an 8.6-gen OLED production line in Chongqing, surpassing Samsung Display’s 4.1 trillion won investment in a similar OLED line in April by nearly three times.

The aggressive investments by Chinese companies stem from the potential impact of OLED displays for tablets and laptops, offering significant market potential beyond the stagnant TV market.

According to research by Omdia, the OLED panel market for tablets – worth $380.6 million this year – is projected to soar to $1.76 billion next year with Apple’s entry. The estimated average annual growth rate from 2021 to 2030 stands at 51 percent.