Apple's Complete Shift to OLED: A Technological Leap Forward
Apple is gearing up to revolutionize its iPhone lineup by 2025, phasing out Liquid Crystal Display (LCD) screens entirely in favor of Organic Light-Emitting Diode (OLED) displays. This transition is not just a shift in hardware but a significant upgrade that redefines the visual experience for all iPhone users, regardless of model or price point.
OLED displays, known for their superior image quality, vivid colors, and energy efficiency, will soon become the standard across Apple's entire iPhone range, including the budget-friendly iPhone SE. The decision marks the end of an era for LCD technology in Apple's smartphones, a transition that will have far-reaching implications not only for consumers but also for key industry suppliers.
Why OLED? The Advantages Over LCD
OLED technology is celebrated for its ability to produce individual light sources within the display, eliminating the need for a backlight—a key feature of traditional LCDs. This results in thinner, more power-efficient screens with remarkable color accuracy and deeper blacks. For users, this means a significantly enhanced viewing experience, especially for streaming, gaming, and photography.
Apple’s move to OLED across all models ensures that even entry-level iPhone users can enjoy these advanced features. Starting with the iPhone X in 2017, Apple gradually expanded OLED adoption in its premium models, and now it’s set to be a universal standard across the entire lineup.
A Blow to Japanese Suppliers: JDI and Sharp Face Tough Times
The ripple effects of Apple’s decision will be felt across the supply chain, particularly in Japan. Two major Japanese companies, Japan Display Inc. (JDI) and Sharp Corporation, which once dominated the iPhone screen market, are set to lose significant business. These firms were once responsible for producing 70% of iPhone displays, but their involvement has dwindled as Apple shifted towards OLED technology.
By 2023, JDI and Sharp were primarily supplying LCDs for older iPhone models and the iPhone SE. With Apple’s complete transition to OLED, their involvement will cease entirely, marking a significant shift in the global display market.
JDI and Sharp, unlike their South Korean and Chinese counterparts, have struggled to scale up OLED production for smartphones. Companies like Samsung, LG, and BOE have been quick to fill the gap, emerging as the primary OLED suppliers for Apple's iPhones.
JDI and Sharp: Adapting to Survive
With Apple moving away from LCDs, JDI and Sharp must recalibrate their strategies. JDI, which once relied heavily on Apple for its revenue, is pivoting to the automotive sector, focusing on producing LCDs for car displays. Despite financial difficulties, the company is exploring next-generation OLED technologies, though its current production is limited to smaller screens, such as those used in the Apple Watch.
Sharp, on the other hand, is scaling back its LCD operations. The company recently closed one of its factories producing large LCDs for televisions and has reduced production at another facility in Japan. These moves reflect the broader industry trend of shifting away from LCD technology as OLED continues to gain traction.
The Future of Displays: A New Era for iPhones
Apple’s decision to fully embrace OLED technology by 2025 signifies a major milestone in the evolution of smartphone displays. This shift not only enhances the user experience but also aligns with the industry’s broader movement towards more efficient and advanced display technologies. As OLED becomes the new norm, the days of LCDs are numbered—not just for Apple, but across the smartphone industry as a whole.
The implications for consumers are clear: better displays, enhanced energy efficiency, and an overall superior experience across all iPhone models. For suppliers, however, the shift represents both a challenge and an opportunity to innovate and adapt in a rapidly changing market.