LG and Apple Team Up for 10 Million OLED iPad Pro Panels
Recent reports have indicated that Apple plans to update its entire iPad product line next year, including the iPad Air 6, iPad mini 7, and iPad 11, along with the much-anticipated OLED version of the iPad Pro. Concurrently, Apple has decided to cease production of the 12.9-inch mini LED screen iPad Pro next year, which essentially confirms its replacement by an OLED version.
According to Business Korea, Apple plans to release 11-inch and 12.9-inch OLED versions of the iPad Pro in the second quarter of 2024. Apple has already placed an order with LG for 10 million OLED panels for the new iPad Pro, which accounts for 60% of the total production. LG is set to start manufacturing these OLED panels in the first quarter of 2024, with the production taking place at their 6th-generation line in Paju, Gyeonggi-do, South Korea.
Although the OLED panels for the iPad Pro are priced at three times that of the iPhone and other smartphones, considering factors like size and production cost, even a smaller order volume will significantly contribute to LG Display’s revenue. In recent times, LG Display has been operating at a loss, and Apple’s order is a positive sign for the company.
Starting with the iPhone 15 series, Apple is gradually increasing its procurement of OLED screens. Following suit, tablets, and laptops will also use OLED panels more extensively. By 2026, a foldable OLED screen MacBook model is expected, likely prompting competitors to follow suit, leading to an increase in OLED product supply and rapid market expansion.
Research institutions forecast that the shipment volume of OLED panels for tablets, laptops, and monitors will grow at an annual rate of 41%, reaching 31 million units by 2027. As the OLED market expands, LG Display’s revenue is expected to improve, potentially turning losses into profits sooner rather than later.