LG reportedly plans to adjust its OLED production line, originally designed for iPads, to produce OLED panels for iPhones amid a slowdown in demand for the iPad Pro, according to The Elec.
The line has been seeing its operation rate drop due to the slowdown in demand for Apple's latest OLED iPads, sources said. Readjusting the line allows LG Display to save money while increasing its overall production capacity for OLED panels aimed at iPhones.
Currently, LG produces iPhone OLED panels at its E6-1, E6-2, and E6-3 lines. Adding another new line with a capacity of 15,000 Gen 6 glass substrates per month would cost around 2 trillion won ($1.362 billion USD). By comparison, an IT OLED line used to manufacture two-tandem OLED panels would cost approximately 3.4 trillion won ($2.316 billion USD) to build.
OLED panels for iPads use a glass substrate with thin-film encapsulation (TFE) and two emission layers. In contrast, OLED panels for iPhones use a polyimide substrate with TFE and a single emission layer. Adapting the iPad Pro line for iPhone panels would involve skipping a few processes and adding some additional equipment for the touch process.
It is believed that LG has sufficient inventory of iPad OLED panels to supply Apple until February, allowing the company to switch production to iPhone OLED panels in the meantime. However, Apple's approval will be required for this adjustment.
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The line has been seeing its operation rate drop due to the slowdown in demand for Apple's latest OLED iPads, sources said. Readjusting the line allows LG Display to save money while increasing its overall production capacity for OLED panels aimed at iPhones.
Currently, LG produces iPhone OLED panels at its E6-1, E6-2, and E6-3 lines. Adding another new line with a capacity of 15,000 Gen 6 glass substrates per month would cost around 2 trillion won ($1.362 billion USD). By comparison, an IT OLED line used to manufacture two-tandem OLED panels would cost approximately 3.4 trillion won ($2.316 billion USD) to build.
OLED panels for iPads use a glass substrate with thin-film encapsulation (TFE) and two emission layers. In contrast, OLED panels for iPhones use a polyimide substrate with TFE and a single emission layer. Adapting the iPad Pro line for iPhone panels would involve skipping a few processes and adding some additional equipment for the touch process.
It is believed that LG has sufficient inventory of iPad OLED panels to supply Apple until February, allowing the company to switch production to iPhone OLED panels in the meantime. However, Apple's approval will be required for this adjustment.
Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for more Apple updates.