OLED technology has been in our lives for a long time. Far superior to traditional panel types, this advanced technology works wonders in terms of performance and image quality. However, due to its high cost, it was only found in premium products for a long time. But as technology progressed, costs fell and OLED technology finally became popular. It seems that one of the first companies to lead this transformation will be Apple.

It has long been known that the technology giant wants to use OLED displays in Mac and iPad models. According to the latest information, the company is ready to implement the change from next year, but panel suppliers are delaying significant investments in next-generation OLED production lines due to growing concerns.

Falling Mac sales frighten Apple’s OLED panel suppliers

Apple plans to launch its first OLED iPad devices in 2024. Since the company does not manufacture panels, it has to procure the necessary components from third-party manufacturers, as with the iPhone. Apple has not yet chosen a partner, but South Korean companies Samsung Display and LG Display are trying to become the main suppliers.

Currently, these two companies have large production capacity and are working on Gen 6 OLED production lines. However, they plan to build more efficient Gen 8 production lines that will produce more OLED panels per substrate. The latest information showed that Korean manufacturers were hesitant. Samsung and LG are said to have yet to order the equipment necessary to build their Gen 8 lines, which will take at least a year to complete. This situation shows that the unwillingness of the producers to invest is due to profitability concerns.

The main cause for concern is the drop in Apple sales. Despite the success of M-series processors, Apple reported a significant drop in Mac revenue from last year, falling from $10.4 billion to $7.2 billion. If this decline continues, investments in large production facilities could have negative consequences for LG Display and Samsung Display.

It’s also unclear whether Apple will be willing to pay for OLED panels, especially since there is no precedent for their inclusion in MacBooks. Another concern comes from Apple’s stance on the deal. OLED displays will increase the cost of already expensive MacBooks. This could cause Apple to pressure suppliers to lower prices, resulting in a return on investment. We hope that these problems will be fixed as soon as possible and OLED-equipped MacBook models will be offered to consumers as soon as possible.