LG Display, the display manufacturing arm of LG Electronics, currently supplies the majority of organic light-emitting diode (OLED) panels for the Apple Watch family of wearable devices. However, another display maker may be joining Apple's list of OLED suppliers.
A new report from Reuters claims that Tokyo-based Japan Display will be providing OLED displays for the next-generation Apple Watch later this year. The deal is expected to boost the panel maker's sales after its (liquid crystal display) LCD business has been hit for the most part by Apple's shift to OLED panels, a situation that was further aggravated by reports of less than stellar iPhone Xr sales. The iPhone Xr is the only model in Apple's 2018 smartphones that still uses an LCD panel.
Earlier this week, Japan Display revealed that it's seeking to raise $990 million in new funding from a group of investors. So, its supposed partnership with Apple is good news for the display maker, which has been relying on the Cupertino tech giant for more than half of its revenue.
Japan Display's potential role as a new supplier of OLED panel for Apple may make sense as the iPhone maker is reportedly planning to completely drop LCD panels for its 2020 flagship phones. Of course, it remains to be seen whether Japan Display will also be tapped to provide OLED displays for future iPhones.